Survival of Staffing agencies in the new job market

Staffing agencies or staffing firms, as other businesses should take into account the mantra of survival of the fittest to keep up with the demand of the companies they are serving. The job or employment market out there is essentially a job seekers market with the majority of staffing agencies or firms having a positive attitude towards the job market. The hiring activities are in full gear in the field of financial services, legal, oil, gas, education and Information Technology. There is exists a growing gap when it comes to employment and the staffing agencies must learn to address these issues.

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Benefits of hiring IT staffing versus direct hire staffing

Staffing industry as such has emerged as the most complex market when dealing with the IT clients. The importance of quality and services is on decline with price or cost factors gaining prominence. The staffing agencies or firms are in the race of picking up more businesses that is resulting in fewer services to the clients. However, the growth in the information technology sector is good for staffing industry as a whole. There are challenges in the field of IT related positions being faced by IT staffing agencies as tech related positions were cited as difficult to fill by direct hire staffing firms.

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The increased role of staffing services in United States

Staffing service firms or agencies are playing a pivotal role in  getting people to be engaged in jobs irrespective of the type of employment options such as temporary, permanent, contract to hire etc. Statistics do reveal that in the United States alone there are about 2.9 million workers working in the month of September-2014. However, it is not just about the industry engagement of temporary workers that has provided them with employment but also many of the staffing service firms or agencies have created jobs and placed millions of people in them.

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Staffing services climbing the economic ladder

The American economy is continuing to expand for more than five years in a row since the end of Great Recession. However, in this entire five year period the expansion is at sub-par levels. The U.S. economy took about five years to recover the jobs that were lost during the 18 months of Great Recession. Even though, the job losses have been regained but with the population explosion there are now new workers who are competing for the newly created jobs. The unemployment rate that has come on par with normal levels has also resulted in the decline of labor force participation to the lowest levels in decades.

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The role of contingent work force in staffing

The staffing industry is positive about the contingent work with reports showing that the number of temporary workers in the workforce having increased by 29% during 2009 to 2012 and this is a rapidly growing work force. With the contingent work force segment continuing to grow, organizations are in a frenzy trying to keep up with the management and alignment of these workers alongside their current full time or permanent work force. The role of contingent work force has become important with the changing economy and recovery from Global Recession.

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The positive emerging picture of staffing trends

The staffing companies or firms as of now are on the high growth trajectory as they were during 2013. The staffing firms are enjoying the higher demand for temporary labor and there is a demand for record number of temporary jobs that is expected to continue for the next successive years and beyond. The actual high growth trends in staffing industry started back in 2000’s with companies after getting weary of fighting Great Recession were searching ways for balancing increasing product demand with uncertainty about the workforce or prospective employees. Even though, recession is quite over, but the demand for temporary labor still exists.

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