April 01, 2013

DCR National Temp Wage Index - April 2013

DCR National Temp Wage Index April 2013

From August 2012 to January 2013, actual temp wages continued to increase. We forecast that this upward trend will continue until April, when we might see a drop in national temp wages.

This increase in the forecasted wage rate seems to be influenced by the 1.91% rise in the penetration rate of temporary workers in February (compared with the rate in January of 1.90%).

The United States temporary help services industry added 16,000 jobs in February 2013 for a total of almost 2.9 million jobs.

DCR National Temp Wage Index

Temporary Employment has always been negatively correlated with the National Unemployment Rate, High School Unemployment Rate, and Bachelor Degree Unemployment Rate.

This is a clear indication of the significant tie of temporary job creation with unemployment figures.

Case Study: Business Gain Without Full-Time Employees

Xan Hood, a startup entrepreneur who founded the clothing company Buffalo Jackson, saves $270k without any permanent employees in his organization.  This is a perfect example of how small businesses can be successful in the use of temporary workers. 

Relying on freelancers saves Mr. Hood time and money in various ways. For example, utilizing temporary workers means that there is less government paperwork. This is a huge benefit, especially for a startup that often is short of funding.

Some business owners are starting to use online platforms, like Buffalo Jackson did with Elance, where they have the ability to find freelancers who submit bids for jobs.  Alternatively, many other organizations source their temporary workforce through staffing companies who provide the benefit of professional handling of requirements, especially candidate screening, onboarding and payroll administration.