Amidst the news that the nation’s unemployment rate continues to rise and may reach 10% before the economic recovery really kicks in, some analysts are watching the staffing industry closely. While Staffing Industry Analysts (SIA) predicts that 2009 will usher in an overall drop of 25% for companies in this industry, the firm is predicting an industry growth rate of 5% for 2010.
One sector of staffing, temporary help, is often a leading indicator. So it’s cause for excitement that SIA notes the temporary staffing industry overall experienced back to back gains in July and August, 2008. The following two trends are notable and predictive:
- The industries with the most demand for temporary staff include: Industrial, IT, telcom, manufacturing, and finance/insurance
- The industries where demand continues to fall include: Travel nursing and legal
A related release by Career Builder indicates that 9% of large firms plan to hire temporary employees for the 4th quarter, marking a 2% improvement over the 3rd quarter. The trend watchers at Career Builders concur with SIA analysts when they note staffing increases should be higher for “health care and industrial positions.”
Though this is a small improvement in the employment industry, it’s a positive trend and may prompt staffing firms to increase their marketing efforts going into 2010.[SIA release, 9.28.09; Career Builder release, August 2009]