Hints of Progress – BLS Report

Today the US Bureau of Labor Statistic released its monthly report on the state of the labor market. Here are the main points of interest:

• Non-farm payroll employment was little changed (-36,000) in February, and the
  unemployment rate held at 9.7 percent.
• Employment fell in construction and information, while tem-
  porary help services added jobs.

What is the good news here? “Temporary help services added jobs.” While I was working for a major global staffing firm two years ago, I witnessed first hand the rapid attrition faced by not only my employer but also every other competitor in the industry.

This all happened before the actual recession started making news. The first thing companies do when in trouble is find ways to cut costs. As a result, staffing services often get the first draw of the hatchet.

Consequently, staffing service firms also get first dibs when things start to get better. Fast forward to today. Both Adecco and Randstad have returned to profitability as of Q’4 2009. This is consistent with the BLS indicating an increase in temporary jobs.

Also, talking to my colleagues within the staffing industry, their job req pipeline is back to being full. Yes, hiring is still slow, but the need to grow and add more talent has been accepted by most companies.

Nationally the unemployment rate may not have decreased, but certain markets like Texas and West Virginia are heating up.

I am not the first to say that the economy is recovering. But I can confirm from a grass roots level that I am seeing major improvement and steam is building up fast. Just like the recession fell on top of us without warning, the rebound too will be in full force before we can even know its already happening.