Cheezhead Recruiting News and Opinion

The American Staffing Association found that demand for temporary and contract employees increased “markedly” this month, a potential sign of improvement in the overall job market.

In the two weeks ending August 16, the Association’s Staffing Index came in at 75, up from 71 during early July. The index, which measures demand for temporary workers among ASA member firms on a 100-point scale, has been hovering between 71 and 73 since hitting an all-time low of 69 at the end of December 2008.

The ASA says its members generate 85 percent of sales in the U.S. temporary-staffing industry. Employment experts say temporary staffing is a leading indicator of overall employment, because cautious employers are more likely to add temporary workers before hiring full-time staff following a recession.

The U.S. Bureau of Labor Statistics, however, has been behind the Staffing Index. Employment in temporary help services declined by less than 1 percent to 1.74 million jobs during July. Although the industry has lost 844,000 jobs since the beginning of the recession, the declines have lessened substantially during the last three months.

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