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Hello, and welcome to TCI Business Capital’s February staffing industry update.
As we get further into the New Year, it’s a good time to take a look at what’s happening in the staffing industry. Here’s the latest chatter.
The coronavirus outbreak has people across the world on edge. From its origin in China, the virus has spread throughout the Middle East and Europe. According to the New York Times, federal government officials are warning once the disease spreads to the United States; there may be a significant disruption to American’s daily lives, depending on the severity of the outbreak. It is reasonable to expect an increase in demand for medical staffing if this occurs. Additionally, businesses may look at alternate work arrangements for their staff or even temporarily pause operations.
The latest unemployment figures are out, and the January 2020 unemployment rate was 3.6%, according to the Bureau of Labor Statistics. This rate is up .1% from December and down .4% from January 2019. Total non-farm payroll rose by 225,000 in January. The BLS reports job gains in construction, health care, transportation, and warehousing.
Looking at staffing employment, the American Staffing Association is reporting staffing employment for the week of February 10 – 16 was down .34% from the previous week, and down 6.9% compared to the same time in 2019. The ASA survey respondents said temp-to-hire conversions and the Presidents day holiday affected growth.
Looking at the economy, consumer confidence improved slightly in February, according to a report by Staffing Industry Analysts. SIA cites The Conference Board’s Consumer Confidence Index as improving over the January mark. The expectations index increased from 101.4 in January to 107.8. This index tracks consumer’s short-term outlook for income, business, and labor markets.
Lastly, with spring underway, staffing agencies should be gearing up for the summer hiring season. High schools and colleges are an excellent starting point for recruiting. Counselors and Placement offices are valuable resources for filling summer orders. Reaching out to these offices can be a gold mine for talent.
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Since 1994, TCI Business Capital has provided payroll funding solutions to staffing agencies across the United States. Payroll funding pays you immediately on your invoices, so you’ll be able to meet payroll, accept more contracts, and grow your agency. Visit our payroll funding page to learn more about our services.