Temp Jobs Rise to All-Time High in Market Penetration According to U.S. Bureau of Labor Statistics

Although there are several ways of interpreting the latest info released by Staffing Industry Analysts – companies wishing to avoid full-time hires to keep their health insurance rates lower, businesses having more and more of a tough time finding qualified employees for full-time positions, more younger workers desiring the freedoms that come from the so-called “gig economy” – the news released last week is that U.S. temporary jobs have risen by 5,800 positions, making the new figure the highest level of saturation ever in the American workforce!

According to the SIA reporting released last Friday, May 5th, “Temporary help jobs rose by 5,800 in April from March and the temp penetration rate reached an all-time high, according to seasonally adjusted numbers released today by the US Bureau of Labor Statistics. The temp penetration rate — temp jobs as a percent of total employment — edged up to 2.058% in April from 2.057% in March. In addition, the year-over-year growth rate in temp jobs was 3.89% in April, just down from 3.94% in March, the two largest year-over-year growth rates since July 2015. Total nonfarm jobs rose by 211,000 on a seasonally adjusted basis, up significantly from the gain of only 79,000 in March, which was revised downward from 98,000.

The unemployment rate fell to 4.4% in April from 4.5% in March. The college-level unemployment rate — which can serve as a proxy for professional employment — also edged down to 2.4% in April from 2.5% in March. “The jobs data for April appears solid all around, with overall employment growth returning to trend following the dip in March, and the temporary agency penetration rate edging up to an all-time high,” said Andrew Braswell, senior research analyst at Staffing Industry Analysts.

What this suggests to members of the Flex-Team management is that more companies are either seeing the value of temporary staffing agencies and temp employees for their bottom lines and production schedules, or they’re relying more on our types of services because “traditional HR” is having a more difficult time locating and recruiting good associates.

Given that one of our services – temp-to-hire placements – offers the best of both worlds by providing temporary workers who can be “auditioned” per se before being hired for a full-time,  permanent position – we expect to see more of our regular clients and new customers come onboard to enjoy the value of this tremendous HR advantage. Our employees gain access to businesses they might otherwise never be able to work within, and our clients get to “test-drive” new workers before offering them a permanent position.

We love this aspect of our industry! Read the complete SIA article here. And learn about our temp-to-hire service by visiting this website page. You can also contact us if you have any questions or wish to discuss your company’s particular business scenario and how we may be of service to you.

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