Temp Penetration at Record High
June's Bureau of Labor Statistics (BLS) report for temp hiring resulted in the strongest quarter of temp growth in two years (+4.5% average in 2Q; an acceleration from +3.6% in 1Q) and sent the temp penetration rate to a new high (2.07% vs. 2.06% prior). Temp hiring continues its strong pace so far in 2017, with y/y growth of 3%+ every month this year (vs. an average of +1.4% in 2016), another strong indicator that employers are increasingly embracing both the cyclical and secular benefits of the flex model. Also of note was the addition of 35,000 professional and business services jobs in June, against widespread media reports of employers increasingly having difficulty finding highly skilled resources. 
Against this backdrop, clients would be well served to partner closely with a trusted resource to secure the talent needed to grow their business. In this environment, where skilled resources are at a premium, it is critical that compensation be aligned with the realities of the market. In addition, hiring processes need to be efficient, with the workplace offering positive opportunities for growth.
There is much talk in the media about the economy being at “full employment”. The June BLS numbers are enough to make one pause, as the unemployment number actually went up a tad as more people entered the workforce, which is a positive. All of this would suggest that job creation is still accelerating, and that the economy still has some room to run.
About the Author, Michael Blackman
As Chief Corporate Development Officer at Kforce, Michael Blackman, a 25-year Kforce veteran, is the primary focal point for the Firm with the Wall Street and financial communities. He is regularly sought out by leading economists for his perspectives on the economy and labor markets, and he contributes to a number of key proprietary economic publications.