The North American Shift to a Temporary Workforce

In the last three years, temporary work has grown at three times the pace of permanent work in North America.

Last year, there were 2 million temporary workers in Canada, or, 13.6% of the workforce (1). The same trends were observed in the USA. In August 2012, there were 2.5 million contract and temporary workers in the USA (2). Furthermore, demand for temporary workers in the USA is projected to grow at a rate 5.9% faster this quarter than in the same period last year (3).

Temporary work is becoming popular across a diverse range of fields and levels of expertise. Upward trends in temporary workforce employment have been observed in the education, culture, and accommodation and food services industries (4), as well as in the nursing, information systems, and financial services industries (5).

Across all industries, employers are seeking flexible work solutions to manage productivity and increase competitiveness.

  • Cost Advantages

In working with staffing agencies, the agency, not the employer, becomes the employer of record, responsible for the worker’s administration costs. Since the cost of hiring temporary workers (in the short term) is often less expensive than the cost of recruiting and retaining permanent employees, employers can increase capacity and maintain productivity while benefiting from cost savings.

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