Starting or growing a business during a tough economic climate might seem like a difficult task, but according to a new report by Inc. Magazine, starting a business “right now” for some industries makes perfect sense. And one of those industries is Temporary Staffing Firms.
According the report, while many companies continue to reduce their headcount, agencies specializing in filling part-time positions are excelling, even in a down economy.
According to a www.inc.com article, “This sector — the largest within employment services — should continue to generate the most new jobs in this industry.” The data was gathered by Inc. from U.S. government estimates.
Another interesting trend, given the current success of temporary staffing firms, is the increase in direct hires during 2011. Despite continued economic woes for some businesses and high college-level unemployment, direct hire revenue is still gaining market strength. According to Staffing Industry Review magazine, published by Staffing Industry Analysts, “Revenue is expected to reach $5.1 billion this year from $4.3 billion in 2010, and it’s expected to rise further in 2012.”
The magazine further reported that direct hire staffing agencies were even hiring themselves, as documented by a 10% increase in internal hires (source: U.S. Bureau of Labor Statistics).
While the direct hire industry still has a way to go before it reaches previous revenue levels — the sector reached $8.2 billion a few years ago, according to Staffing Industry Analysts — as the economy continues to recover, so will the staffing industry.
A recent survey from CareerBuilder revealed that many companies that reduced staff after the recession hit are turning to staffing companies and temporary workers for help. According to survey results, 36% of companies plan to hire contract or temporary workers during 2012 — up from 34% percent in 2011, 30% in 2010, and 28% in 2009.”
Thirty-five percent of these companies say they will eventually hire these contract and temporary workers on a permanent basis. Of the companies hiring temporary or contract workers this year, 35 percent have plans to hire them on a permanent basis.
The CareerBuilder survey was conducted by Harris Interactive from November 9–December 5, 2011, and included more than 3,000 human resource professionals and hiring managers across industries and company sizes.
The bottom line is that staffing companies can continue to grow their businesses to meet rising industry demand — even during tough economic times. And as a leader in staffing Invoice financing , account receivables factoring, Capital Partners is here to help answer your questions and provide customized asset-based lending solutions to help you grow your staffing business today.
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