News Release

Aug. 25, 2009

Demand for temporary and contract employees increased markedly from July to August, according to the ASA Staffing Index. Rebounding from a dip typical of the week containing the July 4 Independence Day holiday, the index started the most recent monthly period at 71 the week of July 6–12. Employment subsequently increased every week, ending the monthly period at 75 the week of Aug. 10–16. During the same period in 2008, staffing employment saw a similar increase, but this year’s has been more sustained and robust. Last year staffing employment increased for four consecutive weeks and the index gained two points. In July 2007, staffing employment increased for three consecutive weeks and the index gained two points. So far since this year’s July 4 holiday week, staffing employment has grown for six consecutive weeks and the index has risen four points. This is the first time since the fall of 2007 in which staffing employment has sustained six weeks of growth.

Since June 23, the weekly index number has been reported nine days after the close of the workweek, making the ASA Staffing Index more current and near real-time as a measure of staffing employment trends. Previously, there has been a 16-day lag from the close of a given workweek and when the index was reported. The baseline value for the ASA Staffing Index was set at 100 in June 2006. Data for the index are gathered by ASA corporate partner Inavero Institute for Service Research, a market research firm based in Portland, OR.

Index weeks containing the 12th are compared monthly to match the reference periods used by the U.S. Bureau of Labor Statistics in its monthly employment situation reports, which contain data on the temporary help industry. Because the same reference period is used in both the ASA Staffing Index and BLS monthly reports, the two data series can be easily compared. ASA data are not adjusted for seasonal factors and should be compared to nonseasonally adjusted BLS data.

Many industry analysts cite staffing industry employment as a coincident economic indicator and leading indicator of overall U.S. employment. Research released June 23 by ASA reinforces this with some added distinctions̬staffing employment is a strong coincident economic indicator when the economy is emerging from a recession and is a three-month leading indicator of nonfarm employment when the economy is emerging from a recession. The relative flatness of the index since the beginning of the year signals stabilization in staffing employment, which is a prerequisite for economic recovery.

For more information visit americanstaffing.net.

Interviews with ASA executives are available.

The American Staffing Association promotes legal, ethical, and professional practices for the $86 billion U.S. staffing industry. ASA members account for 85% of U.S. staffing industry sales and operate more than 15,000 offices throughout the nation. Some 2.7 million Americans go to work for U.S. staffing companies every business day.

Founded to promote flexible employment opportunities and ensure the quality of staffing services, ASA has been the voice of the U.S. staffing industry since 1966. Members provide a wide range of employment services and solutions, including temporary and contract staffing, recruiting and permanent placement, outplacement and outsourcing, training, and human resource consulting. ASA and its affiliated chapters promote the interests of the industry through legal and legislative advocacy, public relations, education, and the establishment of high standards of ethical conduct.

Contact
Reem El-Khatib
Public Relations Coordinator
703-253-2047
relkhatib@americanstaffing.net