Temporary job increases ended the year 2013 on a high note adding 40,400 new jobs in December – the highest monthly increase of the year. Temporary jobs contributed 8.8 percent of total job growth over 2013 even though the sector only accounts for 1.8 percent of all jobs nationwide, according to the BLS.
Continued Growth in Temporary Jobs in 2014
Continued growth of temporary hiring shows no sign of slowing down in 2014. In fact, several prognosticators predict high growth rates for contract jobs in various industries throughout 2014. A recent Business Insider article reported on a recent survey that, “Forty-two percent of employers plan to hire temporary or contract workers in 2014, up from 40 percent last year. Of these employers, 43 percent plan to transition some temporary employees into full-time, permanent members of their staff.”
The Palmer Forecast by G. Palmer & Associates forecasts an 8.5% increase in temporary employment in the first quarter of 2014 over the same period last year marking the 16th consecutive quarter (4 years) of year-over-year increases.
The Boston Consulting Group predicts that “higher exports and re-shoring would add 2.5 million to 5 million manufacturing and related services jobs by 2020.” A recent study of U.S. manufacturers estimates that 83 percent are experiencing a skilled workforce shortage with nearly 600,000 high-skill manufacturing jobs currently vacant. Research by the Society of Human Resource Management (SHRM) confirms that due to regional skill shortages, manufacturers are hiring and developing temporary workers to fill the gaps.
Increased Use of VMS and MSP Hiring Solutions
Hiring companies and staffing agencies are increasingly turning to Vendor Management Software (VMS) and Managed Service Provider (MSP) solutions to more efficiently manage contingent workforces. A survey by Staffing Industry Analysts (SIA) reported that more than 50 percent of respondents were using a VMS or MSP solution to:
- Speed up the hiring process
- Lower hiring costs
- Decrease administrative workload
- Receive enhanced reporting capabilities
- Achieve improved management oversight
- Increase their candidate pool
According to the SIA, VMS and MSP spend under management was $100 billion in 2012, a $16 billion increase from 2010.
With more than 20 years of staffing experience, the executive management team of Stay Staffed has provided workforce management solutions and vendor management system expertise to large and small organizations nationwide. Stay Staffed’s workforce management system, including vendor management software (VMS), provides staffing solutions to organizations that wish to achieve higher levels of efficiency, increase productivity, and reduce operational expenses.