Staffing agencies have experienced an acceleration of growth in recent years. However, as 2020 has proven to be one of the most influential years economically, socially and politically, we have seen an economic downturn similar to what happened in the late 2000s. While there is no certainty when the economy will recover, staffing agencies will play a crucial role in reshaping it.
Before COVID-19’s impact, the total number of contingent workers – temporary workers/freelancers/contractors, etc – varied, but it has been estimated that nearly one-third of Americans fell into these categories. Contingent work tends to drop during an economic downturn. However, as the economy begins to recover, the number of employees will increase. This is especially true after an economic recession, but there’s no reason to fear the future of working with a staffing agency.
As a whole, the staffing industry consists of nearly 20 thousand firms, 17 million employees and contributes over $150 billion to the US economy. These results compile temporary, permanent, human resource, and professional staffing firms (plus dozens of other specialized fields). They are a great tool for anyone looking for a job, but they can be especially useful for those who lack resources with finding jobs, and also with recent high school and college grads.
“Staffing agencies don’t only cater to industrial contracts or part-time employment; many excel at providing services in professional industries. They provide flexible opportunities for employees and employers alike. For temporary staffing agencies, they provide solutions for businesses in need of help during busy seasons, big projects, the development business, and to gain new clients. Many companies rely on staffing agencies as more and more businesses put a premium price on flexible staff,” said a spokesperson for a US-based staffing agency.
Many companies will find themselves not having the power or confidence to initially hire long-term or full-time employees. Instead, they rely on contract work and temporary hiring solutions to solve their employment problems. While many industries, like grocery and nursing, are in high demand at the moment, many others are still thriving despite economic challenges. This is one of the great benefits of working with a staffing agency, as not all jobs are readily available on job-posting sites like Indeed or LinkedIn.
Staffing agencies played a crucial role in reducing unemployment and boosting the economy back after the 2008 financial crisis. They helped shift the notion of full-time employment as being the supreme form of employment. This stresses the importance of staffing agencies, temporary or not. And they will continue to shape the economy and help it get out of the COVID-19 hardships.
After the recession from the 2008 financial crisis, there were continuous months of growth for staffing agencies, which points to them being a key in recovering our economy. Will this be the case for 2020? If history repeats itself, then we can rely on staffing agencies for fueling job growth and reducing unemployment.
Staffing agencies are not just beneficial for the economy: they are essential. And as the economy continues to fluctuate, especially with the uncertain future of COVID-19, staffing agencies will play a crucial role in the reshaping of our economy.