A new report indicates that consumer confidence is on the decline, highlighting some of the benefits that can come from contract labor solutions.
The economic recovery from the recession of the late 2000s has not been an easy one. While markets have seen sustained improvements for quite a while, it has not been the most rapid recovery. Many companies have needed to trim down their labor costs and meticulously manage their budgets to ensure that they operate as efficiently as possible.
New Economic Index
The need to maintain operations in a cost-effective manner is proving essential, as a recent economic indicator is showing that the country is not out of the rough just yet. According to the most recent Conference Board Consumer Confidence report, people are growing slightly apprehensive about the current status of the economy. The index fell from 81.8 to 79.7 in September, marking a 2.1 point decrease from August.
"Consumer Confidence decreased in September as concerns about the short-term outlook for both jobs and earnings resurfaced, while expectations for future business conditions were little changed," said Lynn Franco, the Director of Economic Indicators at the organization. "While overall economic conditions appear to have moderately improved, consumers are uncertain that the momentum can be sustained in the months ahead."
The mixed results of this report indicate that the country is not yet out of the woods - there hasn't been a full recovery from the recession. Though other indicators, such as unemployment, which currently sits at 7.3 percent, have returned to levels not seen since 2008, this recent news shows that there are still strides left to be made.
Contract Labor Addressing Concerns
The mixed news is effecting both employers and job seekers. On the one hand, employers want to be able to take on extra work to handle increased business demands that would come from an improving economy, while still maintaining the lean budget that helped them weather the recession. Those looking for work feel a sense of optimism when it comes to finding employment, however, because economic time are still not perfect, it is not exactly a job seeker's market.
However, contract jobs are helping satisfy the needs of both parties. According to Staffing Industry Analysts, the staffing industry market is worth more now than it was in 2007, indicating a growing need for the services provided by these kinds of companies. The source explains that this emergence has come as a result of several factors.
One reason is the previously mentioned need for low-cost labor solutions. Contingent work allows companies to take on help without having to make full time hires. This means that businesses only need to hire work when their business demands demand more labor. With these recent economic indicators showing mixed reviews, this is a much sought-after advantage.
Potential employees also stand to benefit from these situations. Many alternatives to temporary labor offer longer-term contracts than a normal temp situation, meaning that the work is more stable and allows people to develop important experience. When compared to other part-time labor situations, this provides a better sense of stability.
In many cases, these employment agreements can be mutually beneficial. Performance-based flexible labor provides incentives so that employees have extra motivation to work productively, while at the same time ensuring a quality output for their employer. Also, these solutions can provide on-site training, which ensures that the right business protocols are being carried out. This benefits workers as they cultivate skills that would make them employable in the future and the hiring company by ensuring that their operations are being carried out properly.