Is the staffing industry a “bell weather” industry and has the economy reached bottom and on the road to recovery?
Employment in the temporary help industry was virtually unchanged in May, declining only 0.4% on a seasonally adjusted basis from April, according to data released by the U.S. Bureau of Labor Statistics. Staffing industry employment has long been considered a popular indicator of current economic conditions and a precursor of overall employment trends. Recent ASA research confirmed this conventional wisdom:
Key Findings
- Staffing industry employment is a strong coincident economic indicator when the economy is emerging from a recession.
- Staffing industry employment is a leading indicator for non-farm employment—by about three months when the economy is emerging from a recession.
What do you think? Is the staffing industry a “bell weather” industry and has the economy reached bottom and on the road to recovery?
One Comment
Depends on what you mean by “Recovery”… I beleive that staffing is an indicator inas much as staffing has to pick up for the econmy to improve and business to grow again. I think we are near the bottom but see a long struggle to grow again. In the traditional sense I believe many businesses are trying to come out of their defensive positions, however they are being hampered by poor credit conditions. For staffing firms, clients are stretching out payments to 45- 60 day or more, making staffing firms more reliant on credit lines or cash reserves. This inhibits the firms ability to grow and respond to their client’s growth. Cash flow will be a continual problem for some time to come. Coupled with concerns about new employer taxes and burdens makes the future more challenging.