Being Competitive in a Low Unemployment Economy

Hiring from the same pool

Feb 18, 2020

It’s all over the news:  unemployment is down. The economy is growing, and the job market is getting more competitive. According to the U.S. Department of Labor Statistics, temporary help services is generally considered to be a corresponding indicator for economic activity and a leading indicator for overall employment.  From July 2017 to July 2018, the number of employees payrolled through employment agencies nationwide rose 31.4% and, specifically, temporary help services rose by 27.9%.  

How does this affect the economy?  

Changes in temporary help employment tend to forecast subsequent changes in overall employment and coincide with changes in economic activity.  Many companies use temporary help services as a means of quickly adjusting their operations to meet fluctuating demands for their products and services. Economists and Wall Street analysts frequently study trends in temporary services along with several other leading indicators to better understand economic activity.  

How does this affect your business?  

With unemployment down, recruiting and hiring becomes more competitive.  Companies have to recruit passive candidates (those persons who are not actively looking for employment).  In order to secure a good hire, businesses need to consider salaries above market rate.  This varies, of course, by region and industry, but the overall trend shows that companies have to be competitive to persuade passive candidates to change jobs.  

Example:  General labor positions that paid $8.00-$9.00 hour just a few years ago are now competing with retail jobs that pay similar rates.  In order to pull passive candidates into the labor pool, companies need to increase the hourly rate to $10.00-$12.00 hour.  

Not sure about competitive rates?    

Staffing firms are on the pulse of employment trends. You’ve heard the old saying, “You get what you pay for.”  Don’t risk suffering the repercussions of a bad hire.  Consider partnering with a staffing firm like Lofton Staffing Services to help guide your company through the employment process and secure the right candidates, with the right skills, at the right rate.   

About Lofton: Founded in 1979, Lofton Services offers clients the best of all worlds. We provide the responsive, personal service and flexibility of a small local firm while having the technology, resources, and infrastructure to deliver the benefits of the biggest players in our industry. Lofton Staffing can deliver the right people, with the right skills, right when you need them. Contact us today

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