Staffing Jobs as Economic and Employment Indicators
New ASA Research Adds Important Nuance to Conventional Wisdom
A sustained upturn in staffing industry employment would signal the end of the current recession and suggest that overall nonfarm employment would begin to grow about three months later, according to new research by the American Staffing Association.
Staffing industry employment has long been considered a popular indicator of current economic conditions and a precursor of overall employment trends. Recent ASA research confirmed this conventional wisdom, but added important nuance.
Key Findings
- Staffing industry employment is a strong coincident economic indicator when the economy is emerging from a recession.
- Staffing industry employment is a leading indicator for nonfarm employment—by about three months when the economy is emerging from a recession.
These conclusions were drawn from statistical analyses of 36 years of government data.
View a paper that describes the research.
View the ASA Staffing Index, which provides the only near-real time measure of weekly changes in staffing jobs.
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Staffing Industry Economic Analysis
The ASA annual economic analysis, which provides an overview of the size, scope, and dynamics of the staffing industry, is intended as a general reference for staffing firms, staffing clients, industry analysts, journalists, and policy makers.
American Staffing 2009: Looking for Growth
Annual Economic Analysis Puzzles Through the Data and Explains the Trends
June 2009
After one of the most difficult years for the U.S.—and the world—since World War II, everyone is looking for signs of growth. The staffing industry is a good place to start.
The staffing industry has long been considered a coincident economic indicator and a leading employment indicator. That means that changes in the staffing industry coincide with—occur at the same time as—changes in the overall economy. And changes in staffing industry employment lead—occur before—changes in overall employment.
Despite the current recession, the U.S. staffing industry is anticipated to grow faster and add more new jobs over the next decade than just about any other industry.
According to the most recent projections from the U.S. Bureau of Labor Statistics, the employment services industry—which is primarily staffing—is estimated to add 692,000 jobs between 2006 and 2016, making it the second largest job-growth industry in the U.S.
Even though the U.S. staffing industry contracted last year, over the long term, temporary and contract staffing has been growing faster than the economy because of the flexibility factor: employees want it, businesses need it, and it's good for the economy.
Jobs, flexibility, a bridge to permanent employment, choice of alternative employment arrangements, and training—these are the benefits staffing firms offer to today's workers. Flexibility and access to talent—these are the benefits staffing firms bring to business clients. Jobs, labor market flexibility, efficient bridging to permanent jobs, training, lower unemployment rates, and enhanced productivity—these are the benefits staffing firms bring to the economy. Read about these benefits in American Staffing 2009, the ASA annual economic analysis.
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