The staffing industry has a vital role in the employment services sector calculations of the Bureau of Labor Statistics by providing jobs to many people on a full and part-time basis. This paper will provide an overview and examine the role the staffing industry plays in the employment services sector. Fluctuations in real GDP and unemployment have an impact on the staffing industry that generates billions of dollars each year. This paper will also look at important macroeconomic variables that affect the staffing industry and conclude with challenges and opportunities faced by the industry over the next 10 years.
Overview of the Employment Industry
The recruitment and employment services market consists of temporary staffing and permanent placement services as well as staffing of independent contractors and employee leasing. Employment service agencies are labor market mediators that meet the diverse staffing needs of client companies for short-term and longterm contract workers. The global employment services market consists of the Americas comprising the United States, Europe and Asian-Pacific countries (Global Employment, 2008).
The global staffing industry is a multi-billion dollar business bringing in total revenues of $371.1 billion in 2007. This represents a compound annual growth rate (CAGR) of 7.5% for the period spanning 2003-2007. In 2007, temporary placements generated revenues of $314.7, 84% of the markets total value. Market performance for the staffing industry is expected to decline 3.4% for the period 2007-2012 but revenues are still expected to reach $439.4 billion (Global Employment, 2008). Recent projections from the U.S. Bureau of labor Statistics are the employment services industry, principally made up of staffing, is anticipated to become the second largest job growth industry in the United States. The reasons for the expected growth are flexibility for employees and...