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Temp Staffing Holds Strong Despite Economic Uncertainty

July 14, 2022
Phil Cohen

As economic recovery efforts continue in the U.S., employers are still filled with uncertainty when it comes to hiring on full-time employees. Despite these concerns, temporary staffing companies have continued to thrive, since more companies are using their services for their hiring needs.

During economic downturns, the amount of temporary workers in the workplace tends to drop.  Once the economy begins to recover, the number of temporary employees rises, especially when following a recession. The recent recession proved extraordinarily kind. Data collected by the U.S. Bureau of Labor Statistics has revealed that the number of temporary hires has continued to increase for more than 40 months, ever since the recession ended.

The percentage of the country’s workforce comprised of temporary workers has steadily increased since the end of the Great Recession in 2009. Nevertheless, according to the Bureau of Labor Statistics, the highest penetration rate on record amounted to 2.03 percent in April 2000. This rate stayed fairly consistent until the recession began in March 2001.

As a result of the increasing penetration rates of temporary employees in the workplace, more temporary workers are present among companies across the country today. The Bureau of Labor Statistics reported that the number of temporary jobs in the nation saw a dramatic increase by 13,100 workers, amounting to 2.7 million employees in August.

According to industry experts, two factors are behind the dramatic increase in temporary staffing – economic expansion and increasing demand for labor across the country. Brett Good, Robert Half International Inc.’s senior district president of Southern California and Arizona, said that more companies are relying on the temporary staffing industry to fulfill their hiring needs, especially in a time of economic uncertainty. Staffing agencies help companies alleviate labor concerns during the economic recovery. It also provides the utmost flexibility when it comes to hiring.

Although it remains unclear if the increase in temporary employees will lead to structural changes in the U.S. economy, this developing trend could indicate decreasing unemployment rates in the future.

The news isn’t entirely positive. Thanks to increased amounts of temporary employees in the workforce and more temporary workers moving up to full-time, the candidate pool is growing smaller. Temporary staffing companies have to work much harder to find qualified candidates, especially when it comes to filling positions that require a bachelor’s degree or higher. Temporary IT staffing and healthcare staffing are experiencing the most difficulty.

As more and more employers are turning to temporary staffing services to meet labor demands, temporary staffing companies must strive to stay on top of their finances in order to ensure efficient and timely operations. Factoring for temporary staffing can be the key to increasing your company’s cash flow. By converting unpaid or delinquent bills into immediate cash, invoice factoring can help your staffing company make payroll with no problem. Add profit to your bottom line by partnering with a staffing factoring company today. Learn more about the advantages of staffing factoring by working with Factor Finders!

If you want more information on factoring or are looking to get started, just give us a call or fill out an online form!

About the Author

Phil is the owner of PRN Funding and sister company Factor Finders. He has been an authority in the factoring industry for over 20 years, serving on the board of directors for several factoring associations.

Learn more about Phil Cohen