“The pace of temporary job creation after the most recent recession – an average of about 25,000 per month – has been faster than the past two, potentially a good sign for a labor market struggling with a jobless rate of 9 percent.”

This Reuters graphic of BLS data illustrates why experts look to the staffing industry for signs of recovery:

If you compare temporary employment to overall employment, you can see how the number of temporary workers declines faster heading into a recession and rises more quickly in a recovery.

In fact, research from the American Staffing Association indicates that temporary help employment is a strong coincident economic indicator when the economy is emerging from a recession.  Overall, temporary hiring rose steadily through 2010, with U.S. employers adding more than 300,000 temporary jobs (about a quarter of the 1.17 million in overall job growth last year).  Translation?  The sustained upturn in temporary staffing is good news for the economy.

But Cooke goes on to temper this enthusiasm, noting that a faster pace of temporary hiring hasn’t yet translated into significant full-time job creation – a critical piece of the recovery puzzle.  Experts such as Peter Capelli, professor at the University of Pennsylvania’s Wharton School, say that because employers are now using temporary assignments to try out potential employees on the job, the increase in temporary hiring could be masking direct hiring.

Priority Personnel – Driving the Recovery in Central Texas

As businesses throughout Central Texas begin to staff-up again, Priority Personnel is driving the recovery.  We deliver customized staffing solutions to help companies like yours achieve sustained business success in a volatile economy.  What can we do for you?  Contact Priority Personnel today.

With the barrage of data pouring in from newspapers, TV, the internet, social media, RSS feeds, e-mails, voicemails and good-old-fashioned face-to-face meetings, finding the critical information you need amidst all the “white noise” can be exhausting.

Take the BLS Monthly Employment Situation, for example.  It contains monthly employment estimates for over 1,000 industries from its Current Employment Statistics program.  However, the changes in these overall employment levels tend to be delayed in the monthly labor reports – making it a lagging indicator of economic trends.

Sound like a lot of white noise?

Not entirely.  Temporary help employment numbers, which are part of the monthly BLS report, are generally considered to be a coincident indicator for overall employment.  This means that changes in temporary help employment tend to forecast subsequent changes in overall employment and coincide with changes in economic activity.  Why?  Many companies use temporary staffing as a means to quickly adjust their operations to meet fluctuating demands for their products and services.

Here’s how to get current data for temporary help services in the BLS report:

1. Go to the BLS Current Employment Statistics home page.
2. Then select either the HTML or PDF version of the “Employment Situation Summary.”
3. Data for temporary help services can be found in Table B-1 (page 30 of the report’s PDF version).

 Effectively manage the economy’s highs and lows with Priority Personnel.

Our staffing services for Central Texas employers can help you run lean – while providing on-demand access to the talent you need to meet surges in demand.

The Economist Intelligence Unit’s new report, titled “Companies at the Crossroads,” recommends that to restore that trust, companies must put their employees first  – or risk experiencing deep talent erosion and sustained underperformance as the global economy recovers.

Here are some key statistics from the December 2009 report:

• 29% of business executives surveyed said employee engagement is low – and that they expect to lose key people as talent demand grows.
• 41% of respondents cite a shortage of talent in their organization.
• 44% of executives surveyed said they find it increasingly difficult to recruit talented employees.
• 50% of respondents plan to ramp up recruitment in 2010, with only 18% freezing headcounts.

The survey found that while executives understand the need to focus on their talent, greater action is needed to develop sound talent management strategies for the future.  Low trust among mid-level employees, coupled with low graduate recruitment and an ongoing demand for senior executive talent, is creating a “perfect storm” for businesses:  the most talented employees may be headed out the door, with fresh talent not yet recruited.

Bottom line, these trends can have a serious impact on your business as the economy recovers.  Priority Personnel is prepared to help.  We proactively recruit to ensure you always have immediate access to the skilled, talented and reliable individuals you need – especially when that talent becomes hard to find.  Visit our website to find out what we can do for you.