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Demand for staffing on the rise

Posted on January 16th, 2014 Read time: 1 minutes

Demand for staffing services increased in New York, Cleveland, Richmond, Chicago and Dallas, according to the Federal Reserve's Beige Book reported on in Staffing Industry Analysts (SIA). The labor market is also improving gradually, according to the report. The beige book cites the tech industry as the biggest user of staffing services.

In New York, a major staffing agency reported to SIA that hiring activity was stronger than usual in December. Staffing firms in Cleveland reported that job openings and placements rose slightly. In Chicago, there was a report of continued growth in demand, with improvements in the industrial and professional sectors. Staffing firms in Dallas reported that levels were up in professional and technical recruiting jobs.

According to the American Staffing Association (ASA), the ASA Staffing Index reported a slight decline year-over-year. In the week of Jan. 5, 2014,  the index was at 86.31, while in the same week of 2013 it was 87. In 2012, the index was at 84.

Many companies are noticing that hiring a staffing agency or an HR back office support company can save money. They can help with payroll and hire temporary workers, saving companies from the expenses related to payroll taxes and paper work. This may be the reason for the upswing in demand for staffing services.

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