U.S. staffing company shares declined on Friday after a government jobs report showed fewer jobs were created last month than economists had forecast. However, the government report held some evidence that the temporary staffing business is holding up well. Temporary payrolls increased by 21,000 in April, and the temporary penetration rate rose to 1.88% of the total U.S. work force, the highest since August 2007. Analysts and staffing industry observers expect that rate to eventually surpass record levels above 2% as more employers choose flexible or project-based staffing in a choppy economic environment.
“Companies are hiring differently,” says Joanie Ruge, chief employment analyst at Randstad Holding US. “We might see that temporary penetration rate hit historical highs. Most of that is driven by the professional sector.” Ruge notes that professional areas like engineering and information technology are showing the strongest demand for workers.
Say Goodbye to Mundane Tasks and Hello to Efficiency
Are you accustomed to using a plethora of resources to recruit the right candidates? Our research shows that the average firm spends around five hours logging in and out of systems to source candidates to fill one job. We’re excited to announce the next level in candidate sourcing: CareerBuilder Talent Discovery, a platform that has everything in one place. Stop by CareerBuilder’s booth next week at Staffing World to learn more—Booth 813 in the expo hall.