BLS: Staffing Jobs Hold Steady in August; Staffing Up 8.9% From a Year Ago

Seasonally adjusted employment data released Friday by the U.S. Bureau of Labor Statistics indicated that staffing industry jobs eased by 4,900 (down 0.2%) from July to August. In a year-to-year comparison, temporary help employment for the month was 8.9% higher than in August 2011.

Nonseasonally adjusted BLS data, which estimate the actual number of jobs in the economy, indicated that the staffing industry added 49,000 jobs (up 2.0%) from July to August. On a year-to-year basis, there were 9.0% more staffing employees in August compared with the same month in 2011.

“Staffing and recruiting firms generally continued to report moderate growth as we moved into September,” says Richard Wahlquist, president and chief executive officer of the American Staffing Association. “However, clients continue to be extremely cautious about adding personnel.”

Overall U.S. nonfarm job growth slowed in August as the economy added 96,000 jobs over the month—down from the 141,000 jobs added in July and considerably lower than the 120,000 jobs many economists were predicting. Since January of this year, employment growth has averaged 139,000 per month compared with the average monthly gain of 153,000 the economy experienced last year. In August, most of the employment growth was driven by new job creation in food services and drinking places, professional and technical services, and health care.

Food services and drinking places added 28,000 jobs over the month; professional and technical services employment rose by 27,000 jobs; and health care employment rose by 17,000 new jobs over the month. Employment declines were noted in the manufacturing sector (-15,000), with most of the losses concentrated in motor vehicles and parts (-8,000).

The overall unemployment rate edged down to 8.1% from 8.3%. This was mostly due to the 368,000 people who stopped looking for work and therefore are no longer counted as part of the civilian labor force.

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Headline News

Dataskill to Acquire Staffing Innovations
San Diego Business Journal (09/07/12) Julie Gallant

San Diego-based business intelligence and predictive analytics company Dataskill will acquire Staffing Innovations, a recruiting and staffing firm for Internet technology professionals, for an undisclosed sum. Dataskill is seeking to capture local talent in business intelligence and big data analysis. With the acquisition, Dataskill will have access to Staffing Innovations’ health care, technology, aerospace, and finance company clients.

Service Sector Growth Rises in August: ISM
Reuters (09/06/12) Jonathan Spicer

The Institute for Supply Management said Thursday that its services index for August rose to 53.7 from 52.6 in July. A reading above 50 means the sector is expanding. ISM’s employment gauge rose to its highest level since April, reaching 53.8 from a July reading of 49.3, which was the lowest level in almost a year.

Colorado Springs Men Challenging Staffing Fraud Convictions
KKTV.com (09/06/12)

Six men from Colorado Springs, CO, serving sentences for fraud plan to appeal their convictions. According to prosecutors, the six men—Kendrick Barnes, Gary L. Walker, Demetrius K. Harper, Clinton A. Stewart, David A. Zirpolo, and David A. Banks—defrauded staffing firms of more than $5.1 million. Attorneys for the men say the men will appeal the convictions and ask for a new trial. The men say their rights to a fair and speedy trial were abrogated. The U.S. attorney’s office said they defrauded 42 staffing firms using false statements and false time cards, but the companies set up by the men never paid the invoices from those staffing firms.

ASA for You

Today is the advance registration deadline for Staffing World, the ASA annual convention and expo; it’s your LAST CHANCE to save up to $150 per person when you register at staffingworld.org today.

Join ASA and save even more—ASA members enjoy a significant discount on Staffing World 2012 registration fees.
Is your company prepared for what’s coming next? Succeeding in the staffing business means always being one step ahead of the next industry trend, regulatory shift, or legislative change. Stay ahead of the curve with a free ASAProWebinar. Plan to attend “Staffing Industry Legislative and Regulatory Issues” Tuesday, Sept. 11, 3–4 p.m. Eastern time

The ASA legal team will discuss potential lawsuits resulting from government guidance on the use of criminal background checks, mandates related to the health care reform law that are set to take effect in 2014, possible business changes resulting from the November elections, and other pressing issues that can affect your bottom line.

Register online at americanstaffing.net.

National Staffing Employee Week, Sept. 10–16, honors the contributions of America’s temporary and contract employees. To help firms with their celebrations, ASA offers free celebratory materials on its Web site.

Access these tools at americanstaffing.net/nsew:

• Customizable recognition certificates to distribute to your temporary and contract employees
• Thank-you notes for employees and clients that can be added to employee paychecks, invoices, or e-mail messages
  
• National Staffing Employee Week graphics that can be posted on your Web site, added to company materials, or used to decorate your office
  
• A free sample news release, state proclamation document, and journalist invitation
  
• Links to staffing industry fact sheets and media relations tips
  

Please share your National Staffing Employee Week plans and photos with industry peers on the ASA Facebook, Twitter, and LinkedIn pages.

Be sure to watch for the 2013 National Staffing Employee of the Year announcement. The honoree will be revealed on Monday, the first day of National Staffing Employee Week.