As hiring continues to grow throughout the country, many companies are looking for ways to take on additional labor without having to stretch their budget too much.
Employment figures for the month have been encouraging, as unemployment continued to dip down to 7.3 percent and nonfarm payroll hit 169,000 jobs for the month of August. Now, additional employment reports are showing more encouraging signs for the U.S. job market. According to the new ADP Report, private employment increased by 176,000 during the month of August, with medium-sized businesses leading the charge with the addition of 74,000 jobs. As these trends continue, many companies are likely to be looking toward labor solutions that can bring on more hands, without having to dramatically increase labor costs.
Small businesses followed close behind, adding 71,000 employees during the month, while large businesses brought on another 32,000. The trade/transportation/utilities industry was among the industries to see growth with the addition of around 40,000 positions. Manufacturing also made some important strides, bringing on another 5,000 jobs.
"It is steady as she goes in the job market. Job gains in August were consistent with increases experienced over the past two-plus years," said Mark Zandi of Moody Analytics.
How to Streamline Labor Costs
One trend that has become increasingly common is the addition of contract workers. According to The Bureau of Labor Statistics, the staffing industry has added almost one million staffing jobs since the end of the recession. This growth would make sense, because temporary labor solutions are an inexpensive and flexible way to increase a workforce without having to take on expensive full-time employees.
However, there are some elements of temp labor about which companies should be cautious. Because new workers could have a variety of employment experiences before their first day on a job site, they may not be familiar with the working protocols of their specific job site. Some performance-based flexible labor solutions have been able to address these issues through training programs offered by the staffing company, to make sure their workers are equipped for the job.