For years, the American Staffing Association’s Staffing Index has been regarded as a leading employment indicator. Historically this made sense because employers coming out of a recession are more inclined to use temporary employees until they are sure the economy is truly improving.
The December 2013 Report shows staffing employment increased 9.6% over December 2012 and staffing employment increased 0.6% in the prior 30 days.
Today we are in anything but a typical historical cycle. A nearly 10% increase in December’s year over year staffing employment is more likely a reflection of business uncertainty as a consequence of government action, especially the Affordable Care Act (ACA), aka, Obamacare.
The incentives for using staffing services today are unprecedented. In addition to reordering their benefits packages to comply with the law, many companies are uncertain about future healthcare costs and employee participation.
Added to healthcare uncertainty, rising state and federal unemployment rates are contributing to a business environment that makes it difficult to predict operating expenses. The result is an increased demand for temporary workers as companies wait while employment taxes and benefit costs stabilize. At BOLT Staffing, we have experienced an increase in demand in line with what’s happening to the staffing index.
In addition to the law, unemployment is declining. While it may not be falling as quickly as in past recoveries, the numbers of job seekers is definitely down.
What does that all mean to you? If you’re expecting to add personnel in the coming year, it’s not too soon to contact us. In addition to our database and other software resources we have available, we also have personal relationships with high quality candidates who are currently on assignment with us. In many cases we can predict when their current assignments will end, and consequently we can use this information to help you plan your company’s growth this year.
Remember, there’s no cost for our services until you actually take one of our employees. So, if you think you’ll be needing someone in the coming months, call us now! We just might have a proven, capable person whose situation matches your needs.
Looking ahead, the trend toward increased use of flexible staffing solutions will continue as the pressures of the law build throughout 2014.