Signs of optimism point to recovery in staffing industry

Full recovery at least a year away, but uptick in demand noticeable

Despite lingering gloom in the economy at-large, upbeat indications from staffing industry professionals suggest the industry is on the road to recovery, according to a survey conducted by Sterling Resource Funding Corp. (SRFC), a subsidiary of Sterling National Bank.

The survey of 100 attendees of Staffing World 2009, the American Staffing Associationís Annual Convention and Expo, held in late October in Orlando, FL, found that 70% of staffing and recruiting professionals polled have seen slightly improving demand for temporary workers over the past quarter. Seventeen percent said demand was unchanged, while 14% said demand has ìnoticeably improved.î

ìWe have seen a marked increase in our business over the last few months, as our clients experience growing demand,î said Allen J. Gershlak, President of SRFC. ìGiven that the staffing industry is typically looked at as a leading economic indicator, this could be an important sign as we gauge the vitality of the larger economy moving forward.î

The incremental improvements in demand for temp workers are echoed by comparatively reliable access to working capital, based on responses to the survey. Asked how they would rate their access to credit in the past 12 months, nearly 3 out of 4 respondents (73%) said access to credit has not been an issue. The industry hasnít gone unscathed in this category, however, with 25% indicating that while their credit needs have been adequately covered, access to credit has been ìmore challengingî during the same period.

Most staffing professionals surveyed by SRFC donít see recovery for the industry around the corner. Roughly 6 out of 10 respondents (59%) feel it will be at least 12 months before the staffing industry has fully recovered. Some were more optimistic, with 29% projecting a full recovery for the industry in 3 to 6 months.

ìI wouldnít expect to see recovery for staffing spread evenly across industry segments,î said Gershlak. ìFrom what weíre seeing, certain areas, such as information technology, are likely to rebound sooner than certain other sectors.î