Falling U.S. Jobless Claims + Rising Labor Tightness = The Time for Temp Employees
It’s becoming a popular equation here at Flex-Team Inc. as we chronicle the rising need and popularity of temporary employment during a particularly tight labor market season. And although we’ve been writing about this labor trend for some time now, we have to keep talking about it not only because it is good for our business but because we’re offering a cogent solution to a workforce problem that many medium and large-sized companies are experiencing: what to do when you can’t hire enough full-time employees due to lack of availability? How does one keep their business going, or growing, in such a scenario?
According to Bloomberg in an article released today, May 18th, “The U.S. labor market continues to show signs of tightening, with unemployment claims declining for the third straight week and benefit rolls matching the lowest level since 1973, Labor Department data showed Thursday. . . Hiring managers remain more occupied with finding workers than trimming staff, with the headline jobless rate drifting below the Federal Reserve’s estimate of full employment. Benefit claims have been a particularly durable indicator of tightness in the labor market, with initial filings holding at lower than 300,000 for more than two years. The gauge contributes to Fed policy makers’ case that the economy can withstand further increases in the benchmark interest rate this year.”
This is great news for all sectors of our economy and a fairly non-political statistic to point out since these changes in labor demand were happening under President Obama and are continuing under President Trump. The numbers suggest that temporary employees and temp agencies are definitely one of the strongest solutions for the season, since temp workers can be brought-on to narrow the productivity gap when needed and then released after the labor crunch has been crested. Since this model of employment is the preferred one for our cadre of employees, everyone benefits and there’s no guilty feelings after a boom-time when our employees return to us, unless they have negotiated for a temp-to-hire placement instead.