Temporary hourly wages are projected to rise in the latter half of 2014, especially in jobs that require specialized skills and experience. This forecast is attributed to a continued increase in demand combined with a tightening supply of contingent workers, due to a decreasing workforce participation rate and an aging U.S. population. This combination of these factors will quickly reduce the current surplus of available workers and drive up wages.
Economic Situation in February 2014
According to the U.S. Bureau of Labor Statistics (BLS) monthly employment report, the United States added 175,000 jobs in February 2014. Of these, 24,400 were temporary help services jobs. The U.S. temporary penetration rate is currently 2.03 percent. Temporary help employment is up 8.8% year-over-year, which is nearly six times higher than the rate of job creation for the overall economy. Monthly gains in the sector have averaged 19,000 over the past twelve months.
The ADP National Employment Report for February showed that private payroll added 139,000 jobs in February 2014. Industries adding employment included business services with 33,000 jobs, trade/transportation/utilities with 31,000 jobs, and construction with 14,000 jobs. The hiring rate for service-providing businesses was substantially higher than goods-producing businesses with 120,000 jobs added.
“February was another soft month for the job market. Employment was weak across a number of industries. Bad winter weather, especially in mid-month, weighed on payrolls. Job growth is expected to improve with warmer temperature.” ~Mark Zandi, Chief Economist at Moody’s Analytics
Checking in on Global Temp Employment Numbers
The international staffing association, Ciett, released its annual report on global private employment agencies in February 2014. Global temporary employment revenues were US $411.1 billion, up from US $359.7 billion in 2012. The total number of agency workers in 2012 was almost 36 million. The United States had the largest number with 11.5 million workers, and Brazil is at second place with 7.1 million workers.
Total number of Individuals Employed in Agency Work, 2012
Source: Ciett, 2014 Economic Report
Online Job Ads Growth
According to a report by The Conference Board, U.S. online job ads rose by 268,100 to a total of 5.2 million in February 2014. Simply Hired reported that the industries with the largest increases in ads were legal jobs (up 29.1 percent) and travel (up 20.3 percent).
“After a very lackluster 2013, the large February increase is the first signal in many months of possible renewed strength in demand for labor.” ~June Shelp, Vice President of The Conference Board