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Temporary and contract staffing firms play a vital role in the US. economy by providing employment flexibility for workers and just-in-time labor for businesses.
Nationwide, staffing firms employed 2.27 million people on an average day in 2003, and 10.7 million in total during the course of the year.
The advantages of temporary work are recognized by workers, businesses, economists, and policy makers. It affords flexibility, training, supplemental income - and a bridge to permanent employment for those who are out of work or changing jobs.
A growing number of temporary employees are highly paid and highly skilled technical, computer, and health care workers who choose temporary and contract work as a preferred employment option because of the flexibility, independence, and in some cases higher pay.
The advantages to businesses are no less significant. Ninety percent of businesses use temporary and contract labor primarily because it allows them to adjust the supply of workers quickly and at a predictable cost.
The macroeconomic impact of temporary work is remarkable given that temporary jobs make up less than 2 percent of total non-farm employment. During the economic expansion that ended in 2000, the staffing industry created 1.9 million new jobs and was identified as a key factor in reducing unemployment. One major study concluded that the staffing industry’s expertise in quickly matching individuals and their skills to available work assignments accounted for fully half of the decline in the U.S. unemployment rate during that period - declines that have been described as permanent.
The correlation between flexible labor markets, lower unemployment, and jobs growth has been noted by Federal Reserve Board chairman Alan Greenspan. In
testimony before the Senate Banking Committee in 2000, Greenspan identified flexible labor markets as a key factor in fostering innovation and growth of new
technologies, resulting in more jobs.
What Staffing Firms Do - Importance of Employer Role
Staffing firms recruit and hire their own employees and assign them to businesses to support or supplement their regular workforces, to provide assistance in special work situations such as employee absences, skill shortages, and seasonal workloads, and to perform special assignments or projects. Staffing firms nationwide invest millions of dollars each year in training their temporary employees—expenditures that have grown dramatically, according to the Department of Labor.
Staffing firms provide a wide range of human resource services such as recruiting, skills assessment, skills training and upgrading, risk management, and payroll and benefits administration - allowing customers to concentrate on their core businesses.
Sources: American Staffing Association
Jobs
We're the jobs people. Staffing companies match millions of people to millions of jobs.
- 2 million people per day are employed by staffing companies.
- 1 million new jobs have been created by staffing companies over the past eight years.
- 79% of temporary employees work full time, virtually the same as the rest of the work force.
Flexibility
The staffing industry offers flexibility to both employees and companies. People can choose when, where, and how they want to work. Companies can get the skills they need to keep fully staffed during busy times.
- 64% of temporary employees say flexible work time is important to them.
- 28% of temporary employees say they work for a staffing company because it gives them the flexibility and time to pursue nonwork interests.
- 81% of companies cite labor force flexibility as the overriding reason for employing contingent and temporary workers.
Bridge
Temporary and contract work provides a bridge to permanent employment. People can try out a prospective employer and showcase their skills for a permanent job.
- 74% of temporary employees say it's a way to get a permanent job.
- 72% of temporary employees obtain permanent jobs while working for a staffing company.
- 40% of assigned employees are looking for their first permanent job or are reentering the job market.
Choice
Many people choose temporary and contract work as an employment option. They can select their work schedules and choose among a variety of diverse and challenging assignments.
- 45% of temporary employees prefer the alternative arrangement over traditional employment.
- 43% of temporary employees say needing time for family is an important factor in their job decisions.
- 29% of temporary employees say they work for a staffing company because they like the diversity and challenge of different jobs.
Training
The staffing industry provides free training for millions of temporary and contract employees to help meet today's demand for skilled workers.
- 90% of staffing companies provide free training to their temporary employees.
- 4.8 million temporary employees received skills training worth $720 million in 1997.
- 70% of temporary employees say they gained new skills through their assignments.
Sources: American Staffing Association, U.S. Bureau of Labor Statistics, the Conference Board
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