IT Contracting Continues to Gain Momentum
Jobs from staffing firms across all industries is up in 2010 and the numbers aren't easy to ignore. In the third quarter of this year alone staffing firms have employed an average of 2.6 million jobs per day which is a 24.9 percent increase from the same time in 2009, according to data released by the American Staffing Association.
It's also an 8.1 percent increase from the second quarter of this year. Third quarter sales in staffing services for the year are $18.1 billion--an increase of 35.6 percent increase from the third quarter of 2009. Here is how ASA's president and CEO Richard Wahlquist characterized the positive trends in the staffing industry:
During the past 12 months, staffing firms have added over a half million new jobs to the economy. Demand for temporary and contract help is expected to remain strong as businesses turn to flexible work force solutions to help them improve efficiency and productivity while adjusting to changing economic conditions.
Wall Street analyst William Sutherland of Boenning & Scattergood is telling investors to put their money on those staffing firms catering to IT services who have seen more job growth than other sectors of the economy. Sutherland told the AP:
We think staffing companies will benefit in either a sluggish or a more V-shaped recovery as U.S. managements have learned the value of flexibility following the pain and disruption created by multiple layoffs and downsizing during the recent downturn," Sutherland wrote.
The analyst said staffing companies that cater to IT jobs are likely to benefit more. That sector has recorded job growth in the low single-digits, compared with accounting and services professions, which continue to see jobs erode.