Office Staffing & Temp Agency

BARRIERS TO ENTRY
High barriers to entry mean that new companies struggle to enter an industry, while low barriers mean it is easy for new companies to enter an industry.

CAPITAL INTENSITY
Compares the amount of money spent on capital (plant, machinery and equipment) with that spent on labor. M- Ysland LLC uses the ratio of depreciation to wages as a proxy for capital intensity. High capital intensity is more than $ 0.333 of capital to $ 1 of labor; medium is $ 0.125 to $ 0.333 of capital to $ 1 of labor; low is less than $ 0.125 of capital for every $1 of labor.

CONSTANT PRICES
The dollar figures in the Key Statistics table, including forecasts, are adjusted for inflation using the current year (i.e. year published) as the base year. This removes the impact of changes in the purchasing power of the dollar, leaving only the "real" growth or decline in industry metrics. The inflation adjustments in M-Ysland LLC`s reports are made using the US Bureau of Economic Analysis’ implicit GDP price deflator.

DOMESTIC DEMAND
Spending on industry goods and services within the United States, regardless of their country of origin. It is derived by adding imports to industry revenue, and then subtracting exports.

EMPLOYMENT
The number of permanent, part-time, temporary and seasonal employees, working proprietors, partners, managers and executives within the industry.

AMERICAN STAFFING ASSOCIATION (ASA)
An industry association that represents the US staffing industry.

EVALUATION-TO-HIRE
The process of hiring temporary staff and evaluating them to consider full-time employment.

JUST-IN-TIME (JIT)
A strategy implemented to improve profitability by reducing inventory and purchasing the raw materials that are needed for the immediate term only.

PENETRATION RATE
The percentage of the total labor force that is made up of temporary workers.

TEMP
An abbreviated term for a temporary worker; someone who is hired on a day-to-day or contracted bases.

TENURE
The duration of time that an employee works with a temporary staffing firm.

TURNOVER
The rate, measured as a percentage, at which outgoing employees are replaced by incoming employees within an industry.

In the current five-year period, prior to the coronavirus pandemic, unemployment rates had dropped to historical lows. As a result, industry revenue increased rapidly in 2016 as the national unemployment rate declined every year until 2020. The number of temporary employees increased throughout the current period until 2019, bolstering demand for industry services. Furthermore, the national unemployment rate declined from 4.4% in 2017 to 3.7% in 2019, increasing demand for employees from expanding businesses. However, the number of temporary employees is estimated to decline 14.7% in 2020, driving a 7.7% decline in industry revenue in the same year. This is due to temporary employees typically being the first to be laid off amid economic hardship. Overall, industry revenue is projected to increase an annualized 2.8% to $235.9 billion over the five years to 2022, including a 3.6% increase in 2022.