New research from AltLine shows that the cost advantage to employers when they hire temporary workers is improving—even in industries like construction, and even though temporary worker wages grew at an average of 5.4% per year from 2016 to 2024.
How can temp wages go up and still be a cost advantage to construction employers?
AltLine analyzed hourly wage and Producer Price Index (PPI) data from the Bureau of Labor Statistics across 22 major occupational fields. Their analysis found that temporary Construction and Extraction workers earn approximately 23% less than their full-time counterparts.
That wage gap is not especially surprising. What is more notable, however, is that temp wages have grown by 43% since 2016 while staffing agency billing rates have risen by only 29% over the same period.
In short, wage growth has outpaced increases in staffing agency billing rates. According to AltLine, that means construction firms using temp labor may be getting more value for their money than they were a decade ago.
In other words, construction firms using temp labor are likely getting stronger labor value at a proportionally lower cost—a structural advantage that isn’t widely discussed.
“While temp workers in construction still earn less than full-time employees on average, staffing agency rates have not increased nearly as fast as wages overall. That means contractors may be getting more value from temp labor while still keeping flexibility around project timelines and cash flow,” said AltLine senior vice president & general manager Jim Pendergast.
AltLine’s research shows that contractors who are strategic about which roles they fill with temp workers will come out ahead, with general labor and less-specialized positions boasting the clearest cost advantage.
A division of The Southern Bank Company, AltLine offers invoice factoring and accounts receivable financing to businesses across the United States.
