Contract Work Expands in Contrast to Decrease in Payroll Employment

According to the delayed release of the October/November 2025 U.S. Bureau of Labor Statistics (BLS) Employment Situation report, total nonfarm payroll employment decreased by 105,000 in October and increased by 64,000 in November. The unemployment rate rose to a four-year high of 4.6% in November.

The BLS jobs report tracks full-time and part-time payroll jobs on employer payrolls. However, it does not measure the extended workforce—contractors, independent professionals, statement-of-work (SOW) consultants, and project-based talent—who power critical work across industries and operate outside the BLS methodology, today accounting for approximately 40% of the total U.S. workforce.

Workforce solution provider Beeline data from Oct. 1 to Nov. 30 shows nonpayroll workers still remain active and expanding: 

• Hours billed by extended workforce talent increased 3.5% in October and 5.1% in November versus prior year.
• Assignment activity shows forward momentum. Assignment starts rose 4.9%, while ends declined by 0.5%.
• Growth is global, with assignments increasing in 45 countries, led by the U.S.
• Spend on flexible talent is up 6.2% year over year, as organizations channel budgets into external workforce strategies.

These trends align with the broader rise of independent work. According to the 2025 MBO Partners State of Independence report, 72.9 million Americans now work independently, and full-time independents have nearly doubled since 2020—from roughly 13.6 million to 27.6 million—contributing more than $1 trillion annually to the U.S. economy. 

“The reality is that work is not slowing, it is shifting,” said Doug Leeby, Beeline CEO. “Companies are investing in flexible, high-skill talent to remain competitive, and millions of Americans are choosing independent work as their primary career path. If we want an accurate picture of the labor economy, we must look beyond payroll jobs and recognize the critical role of the extended workforce. By taking this segment into consideration, organizations, policymakers, and analysts can better align workforce strategies with how the labor market is actually evolving.”