Three Signs Pointing Towards Temporary Employees for the USA’s 2017 Economy
At Flex-Team we are of course biased towards temp workers since they’re our bread and butter as a business. And we genuinely like the men and women who make up our cadre of staffing solution providers. But the economic news rolling off the presses in the past few weeks is making us very excited, because it all keeps pointing to a bright and robust near-future in our industry, written and reported by individuals who are not invested in the business of staffing. It’s appearing to be a “banner” year for temporary employment and temp-to-hire scenarios, as these three following signs suggest. And that’s good news for our clients too.
First off, Reuters, ADP and Moody Analytics reported that the U.S. added 263,000 jobs to the economy in March of this year – more than at anytime recently since December of 2014. This is almost a 20,000-job increase compared to the number of jobs added in February of this year. As our friends at Staffing Industry Analysts report it, “Reuters reports US companies in March added the most workers since December 2014, suggesting further tightening of the labor market. Its survey of economists had forecast the report would show a gain of 187,000 jobs….’Job growth is off to a strong start in 2017,’ said Mark Zandi, chief economist of Moody’s Analytics, which produces the report in collaboration with ADP. ‘The gains are broad-based but most notable in the goods-producing side of the economy including construction, manufacturing and mining.’ The number of goods-producing jobs rose by 82,000, and service-providing jobs rose by 181,000.
Analysis-wise, as more jobs are added to the economy, the available labor supply of willing and waiting workers is squeezed tighter, making it harder in the future to secure strong employee candidates. One of the purposes Flex-Team fulfills is to serve as the HR extension for growing manufacturing businesses – we are capable of supplying temp associates to meet production needs on an ongoing basis. Our team of employees enables you to keep your productivity at maximum output. You can read the complete SIA article on this coverage here.
Secondly, The U.S. Department of Labor reports that filings for unemployment continue to track downwards, a statistic that seems to support the news in the paragraph above. As their reporting indicates, “Filings for unemployment claims decreased by 25,000 to 234,000 for the week ending April 1. The four-week average of claims decreased 4,500 to 250,000….The advance seasonally adjusted insured unemployment rate was 1.5 percent for the week ending March 25, unchanged from the previous week’s unrevised rate. The advance number for seasonally adjusted insured unemployment during the week ending March 25 was 2,028,000, a decrease of 24,000 from the previous week’s unrevised level of 2,052,000.”
Analysis-wise, fewer folks applying for unemployment insurance suggests that there are fewer willing workers in the marketplace in-need of government support due to unemployed circumstances. One does need to factor-in seasonal influences – Spring is notoriously a time when jobs start to open-up as individuals leave positions for new ones at other companies, and golf courses and landscaping companies and residential complexes take on workers as their busy outdoor seasons prepare to begin. Coupled with the first point of coverage in this blog post, however, the sinking unemployment stats suggest that more and more men and women are finding employment and don’t need government assistance. This is wonderful news for the entire country, and also points to a boon ahead for temp staffing businesses who will meet the additional needs of production companies when those companies can’t find their own permanent hires. You can read the entire Department of Labor news release here.
Third and lastly, perhaps at least partially because of the aforementioned news bits above, Staffing Industry Analysts also report that confidence from U.S. CEOs – always a cautious and forward-thinking bunch for the most part – is moving upwards and is optimistically positive for 2017. As the reporting goes, “’CEO Confidence improved further in early 2017, propelling the measure to its highest reading in nearly 13 years,’ said Lynn Franco, director of economic indicators at The Conference Board. ‘CEOs were considerably more optimistic about short-term growth prospects in the US, and to a lesser degree, about prospects in other mature and emerging markets. Hiring plans have picked up compared to last year, with nearly two-thirds of CEOs anticipating an increase in employment levels in their industry. However, 40% say finding qualified workers is a major obstacle to hiring.’ CEOs’ short-term outlook for the US economy eased slightly but remains rather strong, with currently 65% expecting better economic conditions over the next six months compared to approximately 67% last quarter. The outlook for their own industries was more favorable, with 67% of CEOs anticipating an improvement over the next six months, up from 58% in the fourth quarter of 2016.”
Analysis-wise, the CEO Confidence Index being its highest in 13 years says quite a bit about where business seems to be heading in 2017, as does the slightly ominous mention about finding qualified workers being a major obstacle to hiring. Flex-Team solves this very problem for our clients by handling their temp recruitment for them. Read the SIA article about CEO confidence here.
New job additions, downward unemployment, increasing CEO confidence – the future’s so bright you many have to wear shades. Or at least allow Flex-Team to help your company stay on top of orders with our tried and true temp staffing solutions. WE will work with you to craft the exact employment solution you require – won’t you reach out to us today to get started?