Should Staffing Firms Prepare for a Double Dip Recession? Hardly.
June 14, 2012
We are half way through 2012, and we have witnessed a turbulent market that is a far cry from conventional. The Euro Crisis, Middle East tensions and high oil prices, a possibility of the EU breaking up, soaring U.S. deficits: the economy is looking less than optimistic. You would think with all this chaos, it is time to prepare for a double dip recession. Not so fast…data trends state otherwise.
According to Subadhra Sriram of Staffing Industry Analysts,data trends are showing minimal signs of a double dip recession:
“Intrade, a marketplace for the exchange of predictions, puts the odds of a U.S. recession in 2012 at just 20 percent. That’s up from a few months ago when it was 12 percent…
The Institute for Supply Management’s Purchasing Manager’s Manufacturing Index is still in expansion mode signifying that the manufacturing economy is growing. Likewise, the Purchasing Manager Non-Manufacturing Index is also in expansion mode. Unemployment claims are choppy, yes, but inching downwards. And although GDP growth is still tepid, it’s widespread—almost every state in the union is now seeing at least some growth.”
But the real sign that another recession is not looming is the continued and steady demand for contract workers. In fact, temporary work has been rising. Out of the 69,000 jobs that were created in May, 9,200 (13.3%) came from the temp sector. So far this year, temp hiring has created 94,600 jobs.
According to the Bureau of Labor Statistics, there are now 2.491 million temp workers. That’s an 8.5% increase over May 2011. Usually, in times of a recession, temporary positions are the first to go.
These are all signs that staffing companies should be continuing with business as usual. Staffing firms should proceed to prepare for continued growth.
Learn more how Ultra-Staff can help organize your temporary employees.
Megan Curth is the Marketing Coordinator of Automated Business Designs, Inc., software developer of Ultra-Staff staffing software for the staffing and direct hire industry. Ultra-Staff is a staffing software business solution with components for front office, back office and the web. Megan’s email address is megan.curth@abd.net or for more information on Ultra-Staff go to www.abd.net