2010 Looking Good For Staffing Industry

The staffing industry has endured arguably one of the worst recessions in the history of the industry this past year.

Many staffing firms have, unfortunately, been forced to close their doors. A 30% (plus) decline across the board in staffing revenue, layoffs, frozen budgets, etc., has nearly ground the industry to a halt. Any staffing firm that was able to replicate year over year revenue had call to celebrate in 2009.

I don't know about you but I'm glad 2009 is coming to an end! 2008 wasn't any picnic either. 2009 has been an unsavory cocktail of one part failure, one part heartache, and a big splash of depression. From the banking industry collapse to downsizing & unemployment to foreclosures...lions, tigers, and bears, OH MY! Enough already!

But...as Napoleon Hill and other long-term thinkers would attest:

"Most great people have attained their greatest success just one step beyond their greatest failure."

And I'd like to add most staffing firms and staffing professionals that have weathered this perfect storm are now extremely well positioned to take advantage of some sunnier skies.

I liken the staffing firms and vendors to the staffing industry who are left standing after this perfect storm as kin to Forrest Gump and Lieutenant Dan after the hurricane. All the shrimp boats at dock were destroyed during the gale, but the Forrest Gump boat remained at sea during the storm and survived. They stayed in the game. The boats at dock were not actively engaged and were destroyed.

After that, if people wanted shrimp "Bubba Gump Shrimp's what they got."

So what has transpired in the last couple of months that foretells a prosperous and wildly productive 2010 in staffing?

For one, Careerbuilder's job forecast that came out yesterday was very positive. They surveyed 2700 hiring managers and found that 20% of them had plans to hire in 2010 -- up from 14% in 2009. "There have been many signs over the past few months that point to the healing of the U.S. economy, especially the continued decrease in the number of jobs lost per month, a trend that will hopefully carry over into the new year," said Matt Ferguson, CEO of CareerBuilder. "

Full Careerbuilder report: http://www.careerbuilder.com/share/aboutus/pressreleasesdetail.aspx...

Secondly, as an economic indicator, economists often turn to the staffing industry itself as a tool. Temporary staffing has already seen an uptick and is expected to continue to increase. According to the Bureau of Labor Statistics, in November 2009, "temporary help services accounted for the majority of the increase, adding 52,000 jobs."

Full BLS report: http://www.bls.gov/news.release/empsit.nr0.htm

And staffing firms have started to hire internally again - signaling their optimism for a much better Q1 and Q2 of 2010. Since laying off their own employees, staffing firms realize they must be prepared to meet the renewed demands of their clients with solid staffing sales people and experienced recruiters.

So, we hardened veterans in the staffing industry who are still left standing can expect to lead the economic recovery. Let the struggles of 2009 give way to the prosperity of 2010.

Tomorrow evening I'll be toasting to that...hope you will be too.

Best Regards,

Perrin Peacock
Openreq
RecruiterTalk
ppeacock@openreq.com
614-231-4722