Temp agencies the fastest-growing segment of the labor market


Temp agencies booming since recession
Temp agencies booming since recession

The fact that temp agencies are leading the way in labor market growth since the end of the recession suggests the temporary workforce may be becoming the future of employment.

The temporary help services industry has added 557,000 jobs - 57 percent of all positions created in all sectors - since June 2009, according to the Bureau of Labor Statistics. While this trend is typical for employers escaping recession-level depths, it seems most companies still prefer to hire temp workers on a project-to-project basis rather than permanent employees.

This trend could soon become the norm as employers view the workforce in today's labor market as more flexible, according to U.S. News & World Report.

Steven Berchem, vice president of the American Staffing Association, said that even high-paying industries are beginning to take on more contractors.

"What we generally estimate, in terms of revenues or sales for the staffing industry as a whole, more than half of it now comes from professional, technical, and other high-skill, high-wage occupations," Berchem told the news source.

A recent executive summary report produced by the Boston Consulting Group and the International Confederation of Private Employment Agencies found that staffing agencies around the globe are gaining traction because they enable companies to adapt to the constantly changing labor market.