Staffing Industry Set for Continued Expansion

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In reviewing June 2013 labor statistics, climate is ready for a decade of continued expansion of the staffing industry according to Bill Arowood of Appalachian Underwriters.

For the last decade the temporary staffing industry has seen some ups and downs, but recent years have shown a strong trend of expansion. The climate is ready for a decade of continued expansion, according to Bill Arowood of Appalachian Underwriters.

“Employers are facing rising costs associated with employees. From health care to workers compensation to compliance, it can be challenging for companies to justify expansion to meet production needs,” stated Arowood

According to Arowood, the staffing industry is no longer a just tool for companies to satisfy temporary workers needs. It continues to expand into offering more long term assignments. “This allows companies to have fixed costs associated with those employees, but it also allows them to share some of the liability with a staffing partner.”

According the U.S. Bureau of Labor Statistics, temporary labor jobs in the U.S. rose by 9,500 in June. Arowood says that he is seeing the rise in staffing affecting industries that have typically not used temp agencies historically. “Information technology and engineering firms have long been consumers of staffing agency services, but the growth we are seeing is expanding into other white and gray color companies that need production expansion, but need to offset the growing costs of employment,” says Arowood.

Statistical information on the role of temp staffing and professional employer organizations can be found on the U.S. Bureau of Labor Statistics web site and from the American Staffing Association.

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Bill Arowood

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