- Demand in the temporary labor force for third quarter 2018 is predicted to increase 3.4% as compared to the same period last year, according to a report from The Palmer Forecast. The U.S. saw 40,000 temporary help jobs in the first half of this year, with almost 100,000 added in 2017. The data is based on reports from the Bureau of Labor Statistics.
- The growth in the second quarter of 2018 exceeded expectations, coming in at 3.6% with more than 9,000 temporary positions added to the workforce. The increase could be attributed to slightly higher-than-anticipated growth in GDP. Growth was seen in all sectors of the market, including non-farm, government, service and education. Retail made the exception, losing 21,000 temp jobs.
- The temp penetration rate was 2.04% of the employment market for June 2018. Contributing factors to the temp workforce's momentum could include the low unemployment level, with about 6 million jobs unfilled monthly, as well as the anticipated effects of fewer government regulations and lower corporate tax rates, the study said.
The number of temporary and independent workers continues to rise in the U.S. as more job seekers crave flexibility. An influx of independent contractors (2.2% more than the year before) added over $1 trillion to the U.S. economy in 2017, according to a study released by MBO Partners. Data suggests that independent and traditional work grew between January 2017 and 2018, indicating independent work has not replaced traditional roles, but has created a separate resource of workers.
Staffing agencies have been reporting record numbers of requests for workers, with demand at its highest level since 1992, according to the American Staffing Association. An increase of 1.2% in Q1 2018 showed revenues of $32 billion.
That growth will likely continue. More than half of employers recently surveyed by American Express and Institutional Investor Thought Leadership Studio plan to increase their use of temporary and contract workers to meet staffing demand. As more workers look for flexibility to manage work-life balance, some predict independent contract workers will comprise 60% of the workforce within the next 10 years.