April 14, 2014 – One of the most significant indicators that experts use in forecasting the economy is the change in the temporary staffing services industry. As temporary staffing services grow, so does the economy.
Universal Funding can echo the announcement that industry pendants are reporting on the staffing employment numbers based on the increased inquires received for their factoring services from staffing agencies. For the week of March 31–April 6 staffing was up 4.59% compared with the same week last year, according to the American Staffing Association’s Staffing Index, which rose to 95.20. Temporary and contract staffing employment increased 0.34% from the prior week.
Seasonally adjusted employment data released today by the U.S. Bureau of Labor Statistics (BLS) indicate that temporary help services employment added 28,500 new jobs in March (up 1.0% from February). Employment growth in temporary help services had averaged 20,000 per month in the prior 12 months.
In a year-to-year comparison, staffing firms employed 9.6% more temporary workers in March than in the same month a year ago, according to BLS. That was the strongest year-to-year growth since the summer of 2012.
Non-seasonally adjusted BLS data, which estimate the actual number of jobs in the economy, indicated that staffing employment increased by 59,300 in March (up 2.2% from February). On a year-to-year basis, there were 10.0% more staffing employees in March than in the same month last year.
“One reason for this staffing boom is the increase in production in the manufacturing and energy sectors. Invoice factoring, shores up cash flow issues for staffing companies who have experienced this 9% growth in the past year”, says Henry Wozow, CEO of Universal Funding.
Henry goes on to say, “Temporary seems to be the new permanent corporate strategy while companies continue to see how revenues will be affected by the economic recovery and the implementation of the Affordable Healthcare Act.”