On top of this, economic growth has been stable, but not as strong as some would like to see. The most recent Bureau of Labor Statistics Employment Situation summary indicates that payrolls increased by 169,000 jobs while the unemployment rate dropped to 7.3 percent. These numbers are encouraging, but as a Forbes article indicates, there is more to these numbers than meets the eye.
The BLS has changed these predictions in the past, with numbers from June and July actually totaling 74,000 less jobs than previously expected. These numbers could be the result of some companies looking to limit their overhead costs, even as the economy continues its climb out of the recession. One way some businesses are doing this is through contract employment and managed labor solutions.
Forbes looked at data published by Sageworks indicating that temporary staffing agencies have increased sales by at least 15 percent each year since 2010. Many companies are looking to these kinds of labor solutions because they offer a sense of flexibility for the business if the economy takes a similar turn for the worse. However, not every solution is the same.
Some temp labor is simply placed at a site and is not interacted with again by the staffing agency, which can lead to unproductive work. However, other performance-based flexible labor solutions offer training on-site, in doing so increasing worker productivity while letting the hiring company's managers to focus on more important tasks.