It’s a new year and time to figure out your game plan for staffing industry changes in 2019. What changes can your staffing agency expect to see in 2019? Here are a few of our predictions.
Recap of the Staffing Industry Changes in 2018
The staffing industry in 2018 was marked by record-low unemployment rates and more jobs than candidates to fill positions. Due to the tight labor market, staffing agencies focused their time, resources and creativity on recruiting efforts. This meant finding more effective ways to recruit and retain qualified candidates through benefits, flexibility and leveraging mobile tools to increase reach and improve employee engagement.
Staffing Industry Changes in 2019
Staffing agencies across the country are putting together a plan for what they hope will successfully carry them through the staffing industry changes in 2019. Here are a few trends your staffing agency might expect to see in 2019:
-
Temporary Staffing Growth
The growth of the staffing industry has often been tied to gross domestic product (GDP) growth for the country. In 2018, the staffing industry experienced some record growth. Economists predict the first part of 2019 to hold steady around the 2% growth mark for GDP but fall to 1.5% GDP growth by the end of the year.1 Coinciding with the slowing growth of the GDP, staffing agencies may expect to see growth in 2019 but at a more moderate pace than in 2018.
-
Continued Recruiting Challenges
While 2018 was marked by a 49-year low in the unemployment rate2, 2019 will still present significant recruiting challenges for staffing agencies across the nation. Staffing agencies should continue to find ways to improve the candidate experience, implement recruiting marketing tactics to attract more candidates and invest in new recruiting technology to amplify hiring efforts and reach.
-
Age of Mobile
New staffing technology tools will be a major player in 2019 as staffing agencies compete for qualified candidates. According to 76% of staffing clients and candidates a staffing firm that is using the most up-to-date technology is a significant differentiator from the competition.3 Meanwhile, 77% of active job seekers use mobile devices to search for open positions at least weekly.4 Furthermore, 33% of HR managers saw bigger drop-off rates for candidates if their applicant tracking system was not mobile-optimized.5 Investing in new staffing technology solutions, particularly mobile staffing tools, is likely to increase in 2019 across the staffing industry.
-
Wages on the Rise
Despite the rapid growth of the staffing industry in 2018, wages have remained relatively stagnant across the country. According to recent research, staffing agencies may see a shift in wages in 2019 as it finally catches up to the growth and labor market trends from last year.6
This next year is sure to produce many staffing industry changes, both good as well as challenging. These are just a few predictions on what staffing agencies can expect to see in 2019.
Looking for more information on the staffing industry? Access additional industry resources on the Lone Oak Payroll Resources page.
Sources:
- American Staffing Association, ASA Data Dashboard
- American Staffing Association, BLS: Staffing Employment Steady in October
- CareerBuilder and Inavero, Staffing Advantage Report: Where to Make the Right Technology Investments in Staffing
- Inavero and American Staffing Association, 2018 Candidate Influence Report
- CareerBuilder, Reduce Time To Hire
- ADP, Workforce Vitality Report accessed via HR Daily Advisor’s New Data Suggest Wages Might Finally Be Growing Amid Strong Labor Market
