Dec 01, 2013

DCR National Temp Wage Index – December 2013

DCR National Temp Wage Index

The recouping of the market after the government shutdown combined with the surge in demand for goods and services due to the holiday season promises growth for the engagement of temporary workers.  

An interesting sector of growth for temporary work has been in tree plantation. A Bossier City firm will plant 6 million loblolly pines and other trees this winter, relying primarily on temporary workers.                       

Recent reports show that U.S. staffing companies employed an average of 2.96 million temporary and contract workers per day in the second quarter of 2013, up 1.8 percent from the same period in 2012.

The Society for Human Resource Management (SHRM) expects hiring in the services and manufacturing sector to increase in November on a year-over-year basis. A survey by the institute found that 41.8 percent of service-sector companies were planning to increase hiring in November, while 49.0 percent of manufacturing employers were also planning to expand their workforces.

According to the Staffing Industry Analysts (SIA), the annual revenue of the staffing industry is about $339 billion. The largest market, the United States, accounts for about 27% of total worldwide revenue. By 2014, revenue for the U.S. staffing industry is expected to reach $139.4 billion.

Cumulative Changes in Jobs from 2009

DCR National Temp Wage Index

The U.S. Economy

Recent reports show that from July to September, the U.S. economy expanded at a 2.8 percent rate. State and local governments had their highest rate of spending in four years, while exports rose and home construction increased. However, service spending was essentially flat and the cooler summer weather lowered utility spending.

“The economy seems to be heating up faster than people think. It’s incredibly impressive.” ~J.J. Kinahan, Chief Strategist for TD Ameritrade

Reports from the Labor Department show that employers added 148,000 workers in September 2013, and more than one in eight were hired as temporary workers. According to the American Staffing Association, the staffing industry’s stake of job creation is at a 13-year high.

Despite low expectations for the October 2013 jobs report by the Bureau of Labor Statistics (BLS), employers added 204,000 jobs. This far exceeded economist predictions of 120,000 jobs in October. The largest gains were in hospitality, which rose 53,000 in October, and retail, which rose 44,000.

Demand for Temp Workers Increases in Europe

Adecco SA, the world’s largest provider of temporary workers, said that their third-quarter profit rose 61 percent due to higher demand for flexible labor. As the European countries are emerging from recession, the restructuring efforts are driving an increased demand for temp labor. In Spain and Italy, especially, labor reforms are resulting in a growth of hiring. In countries such as France, Belgium and Germany where it is costly to reduce staff, companies prefer to source temporary workers to avoid benefit and pension costs.

“The temporary staffing industry has seen tremendous growth in the last few years, and this trend has helped shine a light on the importance temporary workers are having on the workplace of the future. We’re seeing a real trend toward temporary staffing as a permanent addition to American business models, and it is through industry leaders and innovators that we’ll see advancements in temporary staffing best practices evolve.” ~Jason Leverant, COO of AtWork Group