Temp Job Boom in the USA: Cyclical or Secular?
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report out there shows demand for temporary help booming in the USA.
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the cause, there is less agreement. Is it an uptick in the business cycle? Or is there something more to it, like a secular shift by employers away from hire full-time with all its incumbent benefits and legal responsibilities?
I see it more secular than cyclical. It’s not just the changing preferences of employers though. Sure they are running from commitments –
the new healthcare legislation has made sure of that. But we’re also seeing a flight of jobs back to the USA from India and China. The HSBC China Manufacturing index fell precipitously this last summer, a reading confirmed by the China Federation of Logistics.
Those 100-mile traffic jams around Beijing, the red-shirts in Thailand, the rioters in Greece, the violence down in Mexico, the declining value of the dollar – all those things add up to a secular improvement for labor demand here in the states.
This is the most favorable time in the industry since 2004. We’re seeing it at TempWorks: most of our clients are up 25% to 60% with some more than double. Texas and the DC area continue
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to lead the pack. Demand for online recruitment tools, time clocks, payroll services and funding has never been stronger.