First Research
Updated: 3/30/2009

Personnel Staffing Agencies


INDUSTRY INDICATORS
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US corporate profits, an indicator of corporate demand for personnel staffing services, fell 9.2 percent in the third quarter of 2008 compared to the same period in 2007.

US personal income, a measure of overall employment trends, rose 1.9 percent in January 2009 compared to the same month in 2008.

QUARTERLY INDUSTRY UPDATE
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Weak Labor Market Decreases Staffing Demand - Weakening US labor market conditions indicate a reduced demand for personnel staffing agencies. Weak consumer spending, the construction and real estate slowdown, and low lending activity have affected a wide range of industries; companies across the US are laying off workers, enacting hiring and pay freezes, and reducing compensation. Recession-induced pressures may keep demand for
temporary workers low, according to the Federal Reserve Beige Book.

Recruitment Sites Gain Interview Technology - New online live interview technology could worsen placement agencies' ability to compete with online recruitment sites. While many online personnel sites already offer some functions provided by traditional placement agencies, the live interview on InovaHire.com makes screening candidates online even easier.

InovaHire.com's job board and live interview technology can be used by both job seekers and employers.

Employers See Chance to Grab Top Performers - About three-quarters of recruiters surveyed say that rising unemployment has created an opportunity to find star workers, according to a JobFox poll. Even companies that are cutting jobs or implementing hiring freezes will make room for the right candidates, according to recruiters, creating an opportunity for placement agencies. Decreased recruitment budgets and the increase in applicants may encourage many companies to seek the most cost-efficient recruitment methods, however.

Personnel Staffing Agencies
SIC Codes: 7363
NAICS Codes: 5613