Strong Growth Forecast for 2013

January 28th, 2013

Long-time Staffing Industry Observer and respected Commentator Jeffrey Silber of BMO Capital Markets – US Equity Research News tells us that his group is projecting a 6%-8% increase in temp usage for 2013 and 2014. While this is slower than the (9%) growth the industry experienced in 2012, it still represents solid growth.

The staffing market and economy both face uncertainty, whenever business people perceive uncertainty they tend to be reticent to make significant expense commitments (like hiring more direct staff, more contractors/temps will be used) until the dust clears and there is more clarity. The uncertainty is caused by several factors including the political/economic landscape in the US and Europe, the costs of the Patient Protection and Affordable Care Act; (PPACA) and the growth of real GDP and the general direction of the economy.

New Unemployment claims are down well below the cautionary 400,000 mark according to Staffing Industry Analysts (SIA) Reports. Employment in most States is growing and contractor/temp wages have softened a bit which is a two-edged sword; while, it is easier to find needed workers it is harder to maintain higher margins as the supply strengthens.

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Bob Cohen at 416-229-6462 or Sam Sacco at 910-509-0691. We can also be reached at or

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