Labor market lessons from Georgia's temp workers

EconSouth,  Summer, 2004  

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RELATED ARTICLE: View from the trenches: current temp staffing trends are up.

What does recent temp hiring look like, and what does it mean for employment growth in other sectors? Reports from those who respond to demands for temp workers indicate that demand in the first quarter of 2004 started out stronger than expected.

The staffing supervisor at one Florida temp agency reported an amazing first quarter in 2004. Demand for his temps is up 35 percent during the first quarter. That jump comes on the heels of a 22 percent increase in demand during the fourth quarter of 2003. This supervisor also reported seeing growth in the high-end market (employees making $75,000 a year and up), where clients often use temp agencies to screen skilled permanent workers.

The president of a staffing company in Georgia is also reporting an uptick in clients using his services to find permanent workers. In what is typically his slowest quarter, this company president saw a 30 percent increase in business during the first quarter of 2004 in Atlanta and even better business in smaller towns near Atlanta, demonstrating that the growth is not limited to metropolitan areas.

If the experience reported by contacts in Georgia and Florida is widespread, this strong growth in temp hiring bodes well for permanent, persistent job growth on a broad basis.