August 01, 2012

Seasonality in Contingent Workforce

This Heat-Chart is indicative of month-to-month changes in Temporary Workforce over the last 10 years in a single snapshot. Each cell in the chart represents one month as indicated. The color of each cell is on a spectrum gradient with the intensity of color being in direct proportion to the increase (BLUE) or decrease (RED). Maximum increase in any month is in Jan 2010 with 58,000 new temporary jobs added and maximum decrease is in Nov 2008, with 113,000 jobs lost. Data is seasonally adjusted.

The graph shows a snap-shot of all months since 2000, clearly highlighting growth and decline by month.

Growth in contingent workforce has been consistent since the 2009 holiday season, barring an odd blip per year. In the current year, March had a drop in number of employees in temporary workforce only to pick up again.

After a 13.2 % drop in March, it rebound with a rise of 12.6% and 9.2% in April and May 2012 respectively. The market will watch the trends with expectation this holiday season for leading indicators in coming months. Since 2008, holiday seasons have seen strong employment increase as well as decrease in Q4. While 2011 did not quite replicate the robust hiring of preceding two years, the demand continued in Q1 of 2012.

By 2020, 40 percent of American workers, or nearly 65 million people, will be contingent, and shortly thereafter that percentage is expected to rise to 50 percent, according to the latest economic intelligence.