Quick news release from the American Staffing Association.
"During the week of Sept. 20–26, 2010, temporary and contract employment rose 1.36%, pushing the ASA Staffing Index up to 100. The last time the weekly index hit 100 was during the week of May 12, 2008, meaning current employment in the staffing industry has returned to a level comparable to that of approximately 29 months ago—just before employment in the staffing industry contracted in response to the recession, which the National Bureau of Economic Research said began in December 2007.
With the index now at 100, U.S. staffing employment is approximately 25% higher than in the same weekly period last year.
The ASA Staffing Index at 100 serves as a milestone in observing staffing employment trends, much like 10,000 points in the Dow Jones Industrial Average stock index. The ASA Staffing Index was launched at 100 in June 2006. It grew beyond 100 most of the rest of that year and continued to grow in 2007, peaking at 110 several weeks in the fourth quarter of 2007, when the economy peaked, according NBER. With the economy in recession, the ASA Staffing Index hovered around 100 in the first few months of 2008, then began slipping moderately until September when it plunged sharply to 69 at the end of the year. Now having returned to the milestone of 100, the index indicates that staffing employment has returned to levels comparable to the early part of 2008—and reminiscent of the summer of 2006 when the staffing industry was growing."
USA Staffing Services:
The time to enter this market has arrived. Do so wisely. To gain a competetive advantage, visit our Web site today.
http://www.usastaffingservices.com/
Staffing Solutions for Staffing Companies - Analysis, Insight, Opportunity
Monday, October 11, 2010
Own a staffing firm? Well done!
This article from Sudeep Reddy of the Wall Street Journal continues to confirm that while unemployment rates remain high, many companies are adding staffing firms as permanent partners to avoid hiring permanent employees.
***
Companies are making do with a mix of more temporary and part-time workers at the expense of adding permanent jobs, a trend that suggests the U.S. labor market could stay stuck in neutral for months to come.
Temporary-help payrolls have risen for 11 of the past 12 months, with the sector adding 16,900 jobs in September, according to Labor Department data released Friday. The number of part-timers, meanwhile, surged 612,000 to 9.5 million, the highest on record—a combination of workers who saw their hours cut back and those who were unable to find a full-time position.
Employers typically hire more temp workers as they gear up for an economic expansion, eventually converting many of those workers to full-time jobs. But that has been slow to happen this time around.
"They want to be cautious," said Charles Sigrist, president and CEO of Stivers Staffing Services Inc., a Chicago-based staffing firm. "Clients aren't ready to make that move to hiring full-time. They really don't know what their bottom line is going to be."
The reliance on temps may reflect a longer-run trend toward companies leaning on temporary or contingent labor to fill more of their labor needs. Motorcycle manufacturer Harley-Davidson Inc., for instance, signed a new union contract last month that creates a tier of "casual workers" with no benefits and no minimum number of hours, allowing the company to call up workers when they're needed.
Employers' reluctance to make permanent hires reflects the continued uncertainty about the strength and durability of the recovery. "We're doing more work with less," said Eric Anderberg, vice president of Dial Machine Inc., a contract machining firm that saw sales drop by almost half last year. "You're apprehensive because of what took place last year and because of the uncertainty. We're busy right now but not as busy as 2008."
The Rockford, Ill., company has picked up half a dozen temps, supplementing its staff of 65, for entry-level work. Mr. Anderberg said he's relying on temps to keep costs down and guard against the risk of having to cut a permanent worker later. "It brings me a little more certainty, because I know some of the costs I'm not going to be paying," he said.
Many employers that instituted wrenching job cuts and cost reductions during the downturn are now leaning on temps and other types of contingent workers to fill gaps without creating new burdens on their payrolls.
"Times are tough," said Cynthia Vivian, director of human resources at the American Library Association, a nonprofit group. "We have held back on doing permanent, regular hires. How do we then support the staff in tough times? We go the temp route until we can make an assessment." The group, which has 285 employees on its payroll, now has about four temps and had more before its fiscal year turned on Sept. 1. The organization is doing "limited" hiring of full-time workers, Ms. Vivian said, "but it is not the way it used to be."
Chief financial officers say about 23% of recent hiring has been directed at contract and part-time employees, up from 17% prior to the recession, a recent Duke University/CFO Magazine survey found. Companies expect temp hiring to continue growing faster than overall hiring in the next year, the survey found.
Small businesses in particular reported a greater reliance on temporary and contract employees. "Smaller companies are a little more financially stressed right now," said Duke finance professor John Graham, who directs the survey. "They're having a harder time swallowing the fixed costs that come with hiring a full-time employee."
***
USA Staffing Services:
Clearly, a great time to be in this industry! To gain a competitive advantage, check out our Web site today!
http://www.usastaffingservices.com/
***
Companies are making do with a mix of more temporary and part-time workers at the expense of adding permanent jobs, a trend that suggests the U.S. labor market could stay stuck in neutral for months to come.
Temporary-help payrolls have risen for 11 of the past 12 months, with the sector adding 16,900 jobs in September, according to Labor Department data released Friday. The number of part-timers, meanwhile, surged 612,000 to 9.5 million, the highest on record—a combination of workers who saw their hours cut back and those who were unable to find a full-time position.
Employers typically hire more temp workers as they gear up for an economic expansion, eventually converting many of those workers to full-time jobs. But that has been slow to happen this time around.
"They want to be cautious," said Charles Sigrist, president and CEO of Stivers Staffing Services Inc., a Chicago-based staffing firm. "Clients aren't ready to make that move to hiring full-time. They really don't know what their bottom line is going to be."
The reliance on temps may reflect a longer-run trend toward companies leaning on temporary or contingent labor to fill more of their labor needs. Motorcycle manufacturer Harley-Davidson Inc., for instance, signed a new union contract last month that creates a tier of "casual workers" with no benefits and no minimum number of hours, allowing the company to call up workers when they're needed.
Employers' reluctance to make permanent hires reflects the continued uncertainty about the strength and durability of the recovery. "We're doing more work with less," said Eric Anderberg, vice president of Dial Machine Inc., a contract machining firm that saw sales drop by almost half last year. "You're apprehensive because of what took place last year and because of the uncertainty. We're busy right now but not as busy as 2008."
The Rockford, Ill., company has picked up half a dozen temps, supplementing its staff of 65, for entry-level work. Mr. Anderberg said he's relying on temps to keep costs down and guard against the risk of having to cut a permanent worker later. "It brings me a little more certainty, because I know some of the costs I'm not going to be paying," he said.
Many employers that instituted wrenching job cuts and cost reductions during the downturn are now leaning on temps and other types of contingent workers to fill gaps without creating new burdens on their payrolls.
"Times are tough," said Cynthia Vivian, director of human resources at the American Library Association, a nonprofit group. "We have held back on doing permanent, regular hires. How do we then support the staff in tough times? We go the temp route until we can make an assessment." The group, which has 285 employees on its payroll, now has about four temps and had more before its fiscal year turned on Sept. 1. The organization is doing "limited" hiring of full-time workers, Ms. Vivian said, "but it is not the way it used to be."
Chief financial officers say about 23% of recent hiring has been directed at contract and part-time employees, up from 17% prior to the recession, a recent Duke University/CFO Magazine survey found. Companies expect temp hiring to continue growing faster than overall hiring in the next year, the survey found.
Small businesses in particular reported a greater reliance on temporary and contract employees. "Smaller companies are a little more financially stressed right now," said Duke finance professor John Graham, who directs the survey. "They're having a harder time swallowing the fixed costs that come with hiring a full-time employee."
***
USA Staffing Services:
Clearly, a great time to be in this industry! To gain a competitive advantage, check out our Web site today!
http://www.usastaffingservices.com/
Another good sign for the industry!
As reported Friday by Staffing Industry Analysts:
"U.S. temporary help payrolls rose by 16,900 in September to approximately 2.1 million, according to seasonally adjusted numbers released today by the U.S. Bureau of Labor Statistics. In addition, August's change in temporary employment was revised up to a gain of 17,700 jobs from the initially reported gain of 16,800.
The temporary help penetration rate rose to 1.63% in September from 1.62% in August. Since its low in September 2009, temporary help has added approximately 404,200 jobs.
The employment services category added 28,200 jobs in September to reach employment of approximately 2.8 million. The employment services category includes temporary help services as well as employment placement agencies, executive search services and professional employer organizations."
USA Staffing Services:
To gain a competitive advantage, check out our Web site today!
http://www.usastaffingservices.com/
"U.S. temporary help payrolls rose by 16,900 in September to approximately 2.1 million, according to seasonally adjusted numbers released today by the U.S. Bureau of Labor Statistics. In addition, August's change in temporary employment was revised up to a gain of 17,700 jobs from the initially reported gain of 16,800.
The temporary help penetration rate rose to 1.63% in September from 1.62% in August. Since its low in September 2009, temporary help has added approximately 404,200 jobs.
The employment services category added 28,200 jobs in September to reach employment of approximately 2.8 million. The employment services category includes temporary help services as well as employment placement agencies, executive search services and professional employer organizations."
USA Staffing Services:
To gain a competitive advantage, check out our Web site today!
http://www.usastaffingservices.com/
Sunday, October 3, 2010
GDP estimate up!
Another quick report from Staffing Industry Analysts:
"The U.S. Department of Commerce raised its growth estimate of real gross domestic product in the second quarter.
Real GDP increased at an annual rate of 1.7% in the second quarter, according to a third estimate released today by the Department of Commerce. An estimate released last month had growth at 1.6%.
U.S. real GDP grew 3.7% in the first quarter after declining at a rate of 2.6% for full year 2009.
Staffing industry growth, with the exception of healthcare staffing, strongly correlates with growth in GDP, according to research from Staffing Industry Analysts. Staffing industry revenue tends to grow faster as GDP improves."
http://www.usastaffingservices.com/
"The U.S. Department of Commerce raised its growth estimate of real gross domestic product in the second quarter.
Real GDP increased at an annual rate of 1.7% in the second quarter, according to a third estimate released today by the Department of Commerce. An estimate released last month had growth at 1.6%.
U.S. real GDP grew 3.7% in the first quarter after declining at a rate of 2.6% for full year 2009.
Staffing industry growth, with the exception of healthcare staffing, strongly correlates with growth in GDP, according to research from Staffing Industry Analysts. Staffing industry revenue tends to grow faster as GDP improves."
http://www.usastaffingservices.com/
Initial unemployment claims drop
Quick report from Staffing Industry Analysts:
"The number of U.S. initial claims for unemployment insurance filed in the week ended Sept. 25 fell by 16,000 from the previous week, according to seasonally adjusted numbers released today by the U.S. Department of Labor.
Initial claims for the week ended Sept. 25 totaled 453,000, down 3.4% from the previous week's number of 469,000 -- which had been revised up by 4,000.
The four-week moving average of claims for the week ended Sept. 25 fell to 458,000, down 6,250, or 1.4%, from the previous week's revised average of 464,250."
http://www.usastaffingservices.com/
"The number of U.S. initial claims for unemployment insurance filed in the week ended Sept. 25 fell by 16,000 from the previous week, according to seasonally adjusted numbers released today by the U.S. Department of Labor.
Initial claims for the week ended Sept. 25 totaled 453,000, down 3.4% from the previous week's number of 469,000 -- which had been revised up by 4,000.
The four-week moving average of claims for the week ended Sept. 25 fell to 458,000, down 6,250, or 1.4%, from the previous week's revised average of 464,250."
http://www.usastaffingservices.com/
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