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Staffing industry in excellent shape despite contraction in the economy

Posted on May 30th, 2014 Read time: 2 minutes

The staffing industry is in the best shape it's been for the last eight years, according to the American Staffing Association. Staffing companies have employed an average of 2.96 million temporary and contract workers per week, which is a 3.2 percent increase year-over-year.

"Businesses continue to turn to staffing companies for flexible workforce solutions and to add staff to keep up with growing demand," says Richard Wahlquist, ASA president and chief executive officer. "That means more temporary and long term opportunities for job seekers as more staffing employees bridge to permanent jobs."

Even in spite of the bad winter weather, employment in January through March was the best first quarter for since 2006.  The total sales for staffing reached $26.64 billion in 2014, which is an increase of 2.6 percent year-over year.

Hopefully, this is a sign of things to come from the staffing industry. Temporary workers are an excellent solution for many staffing problems, whether weather-related or not.

For example, according to Market Watch, even as the staffing industry thrives in Q1, the rest of the economy contracted by 1 percent. This was the first decline since 2011. The economy has since been in recovery mode.  Analysts are unsure whether the contraction is due to the unexpected surge in growth during Q4 of 2013 or whether it had something to do with the poor weather.

The numbers show a decline in exports and less investment in the housing market. Business investment in general fell as well.

During such lean times, it is heartening to know a staff of dedicated temporary workers can help businesses that need an extra hand but can't afford to hire full-time labor. Another option during such a time is to begin outsourcing departments. For example, companies could hire an HR outsourcing services company as a way to streamline the business.

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