With economic trends proving frustrating for many, alternative employment solutions could prove the best way to take advantage of the country's current fiscal climate.
Job trends as of late have seemed to vary greatly from month to month. One month could see hiring increase greatly while the next could be far below expectations. This has made for an annoying job search for those who have sought employment since the recession of the late 2000s.
This has been a cause of headaches for many employers as well. Daily Finance explains that one of the major problems has been that the U.S. workforce is shrinking, which is creating frustrations among businesses. The news source examines a Forbes article that explains the country's GDP has only seen an average growth of about 0.73 percent from 2008 to 2013, which is far smaller than the 2.99 percent average annual growth between 1998 and 2007.
What Has Caused the Slowdown?
One of the major reasons behind this is the shrinking labor force. Two major reasons are a decrease in immigration to the country, while more of the baby-boomer generation are retiring. This can make filling jobs difficult for employers, especially in the context of the often reported skills gap. With less people who are capable of the work that hiring companies need, business operations may not grow at the rate that companies would like.
What's worse, according to the news source, is that productivity is not at the levels seen before the recession. Part of this is due to the lack of uptake by technologies that could help increase productivity.
Finding a Solution
This trend has been a major part of the minimal economic growth that the country has experienced. The key then would be to make the most of the available labor force, which is increasing with young people.
Ultimately, the news source explains, this comes in having the business community make adjustments to accommodate these factors. By being able to improve productivity with the available labor force, the economy could expand.
Contingent Labor Growing
One way in which come companies have been able to do this is through the use of contingent labor. According to the Courier Press, one of the fastest growing parts of the workforce has been contract labor. Since 2009, the workforce has grown to nearly 3 million workers - increasing by more than 50 percent during that time.
Such strategies have been able to offer companies concerned about their bottom line a sense of flexibility when looking to meet expanding business demands. Because the GDP has been so slow to grow, contract labor can allow employers to take on extra workers when they see fit, rather than having to make long-term commitments without knowing where the economy is headed.
This can also be a successful means of employment for those looking for jobs. As mentioned before, contract work is growing fast, offering opportunities that may not otherwise exist. The key in both instances is making sure that the right strategy is used.
Some temporary staffing agencies will find workers a job site and send them there without any further contact. These situations benefit neither the worker, who may have no prior knowledge of working in such an environment, nor the employer who is being given what could be a unproductive worker.
Performance-based labor solutions can address these issues while still affording employers the flexibility they seek. Through on-site training provided by the staffer, workers can increase their productivity dramatically, while at the same time building the experience necessary for today's economic climate. In this way, the employment climate of the country becomes more productive, thereby helping the economy as a whole.