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Economy strong, according to 2 independent indicators

Posted on June 5th, 2014 Read time: 2 minutes

Labor market conditions are good, according to the Federal Reserve's latest Beige Book report released June 4. Hiring is picking up at a "moderate" pace in many of the major U.S. cities. Consumer spending has also increased. Consumer spending is often the sign of a strong economy. Activity in what the Federal Reserve calls "the service sector" grew for the most part, although tech firms grew the most. Lending activity also increased.

All of this is good news because the staffing industry thrives when the economy begins to expand. Businesses start to seek growth opportunities, and they might need to hire more people. A great way to hire a new employee is through the temp-to-hire system. Hiring a temporary worker allows businesses to try out an employee before he or she begins full-time work. For some companies, it can be more cost effective to do this than hire someone on a trial period, with all the HR paperwork and insurance paperwork required, and then fire him or her.

The American Institute of Certified Public Accountants (AICPA) has also done its own research into the current business climate, and it reports positive, sustainable growth. According to their study, the majority of business executives are happy about prospects for the economy. Exactly 51 percent of executives taking the AICPA survey have called themselves "optimistic" or even "very optimistic."

In 2009, only 5 percent of executives expressed optimism. In fact, the CPA Outlook Index stands at a new post-recession high of 72.

"Companies are beginning to focus more on growth, hiring and investment," said Arleen Thomas, AICPA's senior vice president of management accounting and global markets. "We have to wait and see if we've truly turned a corner, but executives are clearly feeling more comfortable about the domestic business climate going forward."

Businesses seeking to capitalize on this growth as quickly as possible may look to an employer of record for their temporary staffing needs.

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