Contract and Temporary Hiring Outlook for 2017

by placers on December 13, 2016 in Workforce


Like most states in the U.S., staffing and temporary employees are changing how businesses hire in Delaware. You can see a steady upsurge in the hiring of contract employees and temp workers throughout the country, with more than 3 Million temporary employees on payrolls in November, according to the Bureau of Labor Statistics. Looking back, we can see distinctive patterns that indicate a strong future in temp staffing. However, moving into 2017 there are some factors that could affect the future of temporary hiring.

State of the Nation: The Economy, the GDP, and the Workforce

As the nation faces a new administration that promises very significant changes to government and several federally funded programs, 2017 is already shaping up to be a very interesting year. The workforce is directly tied to the GDP, which is directly tied to the economy. When there is a deficit for one pillar, it creates a domino effect to the others.

Economists are predicting a mild cyclical rebound for the U.S. economy in the coming year with jobs continuing to increase and unemployment remaining below five percent. Combine that with a 3.8 percent increase in consumer spending over the past year as well as 3.6 percent increase in net wages and you have a strong argument for a continued, steady increase in contract and temporary hiring in 2017.

Employees find Temp Staffing to be a Viable Career Stepping Stone

Attitudes about temp staffing are also shifting. In an average week there are more than three million contract and temporary workers placed by staffing agencies in the U.S. Almost half of employees working through a temporary employment agency believe that it is a good method for securing a permanent job. Ninety percent feel that temp jobs give them valuable experience that makes them more employable.

Employers see Temp Staffing as a way to Gain Workforce Flexibility

Hiring managers have also found value in temporary and seasonal workers, turning to temporary staffing agencies for traditional reasons like filling in for employees on leave or getting specialized help on a project. However, many have also found that hiring temporary workers give them a unique edge in gaining access to talent in addition to achieving flexibility in the organization’s workforce.

Looking Forward: What’s in the Future for Temporary Staffing?

Temporary staffing has enjoyed some growth during 2016 despite a somewhat slowed U.S. economy. While 2017 is being projected in a favorable light, there are several issues that could directly impact temporary hiring. One such issue is the Affordable Care Act (ACA). A temporary employee’s eligibility for ACA is based on how many hours they work for that company, along with other factors. If changes are made to the ACA, as have been indicated by the incoming administration, there could be a whole new learning curve for businesses as they struggle to get a handle on any new rules and regulations. It would be interesting to revisit this and other workforce issues at the six-month mark to see how 2017 is shaping up and what may lie ahead.

Do you need temporary help? Give us a call at (302) 709-0973

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