There has been a notable increase in contract labor as of late, which means that potential employees need to be sure of their staffing agency, while companies should be careful of who they hire.
A new story from the Associate Press (AP) takes a look at the strong onset of contract employment in the United States since the end of the recessions. It notes that the number of contract workers has jumped by 50 percent since the end of the recessions 4 years ago equaling about 2.7 million hires. The article also notes that of the economists the AP surveyed 75 percent believe that this trend will continue. These statistics echo most the recent jobs report by the U.S. Bureau of Labor Statistics which showed that 10,000 contract jobs were created in June. This is optimistic news for job seekers as more companies are hiring, however, not all employment is positive employment.
Mixed News for Job Seekers
The article states that this comes as mixed news for people who are looking for jobs as it can mean work for some, but an uncertain employment future for others. For some workers, temporary labor means poor compensation with minimal benefits and no guarantee of long-term employment, which in turn means that these under-compensated employees cannot spend freely. This lack of free spending ultimately hurts the economy
The story refers to one Latrese Carr who works a Walmart night shift for very little compensation simply because she has no other options. This echoes Rosa Ramirez' experience in a recent ProPublica article, who is subject to very poor working conditions as a temporary laborer in Illinois. The story is one that has become common among many temporary workers, however, there is a way to take advantage of this hiring boom.
Contract Labor a Viable Alternative
Contract staffing agencies offer a way in which job seekers can take advantage of the increase in contract hiring without having to undergo the hardship of temporary labor. This comes in the form of more long-term contract labor that provides stable employment opportunities while providing just compensation for the worker.
Contract employment solutions compensate employees based on performance rather than by the hour, so the laborer has incentive to work productively, which translates into better production for the hiring company. Many contract staffing agencies also provide on the job training, which gives the worker future employable skills while the hiring company does not need to worry about unqualified labor in its operations.