Why Staffing Continues to Grow

We posted on the July jobs report, which included continued staffing growth.  The percentage of temps in the workforce is at its highest level in more than five years.  Its steady rise points to the central role that project-based workers play in the labor market.  Why do we see such an increase in contract workers?

For one thing, employers are cautious.  Although sharp spikes or drops in temp payrolls often indicate a turn in the overall labor market, this is not the case currently.  Instead, employers are cautious about the economy, and contract workers give them the flexibility to produce the work they need without the risk of over-hiring, should demand change.

For another thing, employers and employees are starting to get accustomed to the benefits staffing firms provide.  The two can “try each other out” for fit before committing.  Contract workers get the benefit of flexible hours and schedules, while employers can run more efficiently in response to the ebb and flow of workloads.

What other reasons do you see for the rise in temporary workers?

About TRC Staffing Services, Inc.

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