Booming temp industry a positive indicator

By Katie Morell
Contributing Writer

With recent improvements in the economy have come increased opportunities for temporary employment, according to local staffing firms.

“We are only a few weeks into the year and yet this is the best start to a year we’ve had in a long time,” said John Syverson, vice president and territory manager for Arlington Heights-based Kelly Services, a staffing agency with offices in the Chicago area.

“It goes against how staffing normally happens. Clients usually ramp up in the fourth quarter and lay off in the first quarter, but we are seeing a continuation of ramping up from the fourth quarter. This week I got a call from a client who wants to hire 35 people on their payroll by Monday.”

John Syverson, vice president and territory manager for Arlington Heights-based Kelly Services, has seen an influx in available temporary positions stemming from pent up demand for productivity. (Photo by Dietrich Wolfframm)

Eric Buntin, a Chicago-based managing director for Randstad, an international staffing firm, has also seen a drastic increase in the availability of temporary positions.

“We are seeing business pick up right now,” he said. “The U.S. Bureau of Labor Statistics and American Staffing Association report that 52,400 temporary jobs were added nationally in November of last year.

“That is a big change from the year before. In November 2008, there was a decline of almost 80,000 temporary jobs over September 2008. The numbers now are almost a cyclical response in the drop being so significant a year ago.”

The current influx in available temporary positions stems from pent up demand for productivity, according to Syverson.

“Our clients have projects where they need people,” he said. “They have put off these projects and laid off employees. Now business is coming in and work has to get done, so they are turning around and hiring people.”

Temporary workers help companies meet that demand, Buntin explained.

“This increase does indicate that companies are facing challenges in productivity,” he said. “They have been doing more with less as they have laid off so many people. Many companies are saying that their business has improved and now require additional employees to meet demand.”

Although business may be coming in, Buntin said employers are still weary of hiring permanent employees.

“Research shows that as recessions start ending, temporary staffing begins to increase,” he said. “There is still uncertainty, but companies want to maintain productivity and still have the flexibility to make changes in their workforce as the market continues emerging from a recession.

“They want to make sure that [demand] is sustained and the emergence from the recession has taken hold. They want quality people to manage productivity, but don’t want to make a full-time commitment until they are sure the economy is holding.”

Experts agree the future is bright for temporary position seekers.

“We should see significant growth for temporary staffing in 2010,” Buntin said. “It is a good thing for people looking for jobs and for the creation of jobs going forward into 2010 and 2011.”

Syverson also sees significant opportunities going forward.

“The one thing I want people to understand is that there is certainly hope,” he said. “There is more work to be done than employed people to do it. Now companies are going to reach out and hire. It is going to be a good year. People are going to get jobs this year.”

Posted on Wednesday, February 03, 2010 (Archive on Wednesday, February 10, 2010)
Posted by jstoltz Contributed by jstoltz

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