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Uncertain economy a boon for staffing firms

Posted on January 18th, 2012 Read time: 1 minutes

Staffing services and human resources firms are optimistic about their prospects for 2012, according to Money News.

With unemployment rates dropping from more than 9 percent last year to the current rate of 8.5 percent, temp agencies will likely see greater demand for their services.

"When unemployment rates rise and more people are out of work, there's less demand for payroll processing and other human resources services, not to mention less need for hiring services," the news source points out.

Yet in today's improving-yet-still-questionable labor market, companies are more apt to go the temporary route than take on full-time employees, fearing the economy might collapse once again.

For example, investor services firm Moody's recently reported that workforce solutions company Manpower Group expects "moderate revenue and profitability growth … driven by steady demand for temporary labor," adding that the staffing industry could benefit from an uncertain labor environment.

With the Super Bowl on the horizon in Indianapolis, temporary workers are being hired in droves. The event is expected to create 500 jobs and $213 million in direct wages, according to the Indianapolis Star. 

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