Predicting the End of Recession

Given the severity and longevity of the economic downturn, most businesses are eagerly searching for signs of a turn-around.  Some such signs may now be taking shape.

Consistent improvements in temporary / contract employment levels are widely accepted as indicating improvement within the overall economy.  In fact, recent research by the American Staffing Association (ASA) concludes that a “sustained upturn in temporary and contract staffing employment would signal the end of the current recession”. A measure of temporary and contract staffing employment levels, ASA’s Staffing Index, has shown gradual but steady growth for almost three months.

Another gauge, The Associated Industries of Massachusetts’ (AIM) Business Confidence Index, is focused on the local market. The Index has risen in 5 of the last 6 months, indicating a generally more favorable outlook among AIM member companies with respect to the business environment. 

These benchmarks, along with our own observation of a distinct uptick in interest among our clients to engage contractors, provide hope that business conditions will soon improve.

Three Compelling Reasons to Consider Contractors Now

1. Driven by high unemployment, Unemployment Insurance (UI) rates are set to skyrocket in 2010.  AIM has recently warned of an average $200 rate hike per employee – a 33% increase – bringing the average Massachusetts UI cost to $800 per employee.  Note that this is a projected average impact:  Many employers in the technical field pay a much higher rate and therefore will see a bigger jump in state UI expenses. New Hampshire and Rhode Island employers should expect significant increases in their state UI rates as well.

   Contractors are employees of the staffing firms from which they are assigned; therefore, the staffing firms are responsible for all related UI expenses. You will reap the benefits of the contractors’ contributions, without the burden of their UI taxes.




2. Many companies have instituted hiring freezes and have drastically cut staff. Using contractors, you can bring in skilled professionals to handle an increasing workload without adding to your headcount. You are able to maintain maximum flexibility to react to changing business conditions. If the need arises, it is easier and quicker to let a contractor go than it is a direct employee.



3. As a result of the recession, the supply of technical talent interested in contracting is higher than at any time in recent memory.  Even in good economic times there are a number of technical professionals eager to contract, attracted by the flexibility and variety that contracting provides.

   In addition to this consistent core of contractors, we now have another group of technical professionals eager to contract. They fall into two broad categories: Immediately available candidates who were victims of massive layoffs or company closings; and currently employed candidates anxious to find a better opportunity with a growing company.

Triad Engineering Corp has specialized for almost 40 years in helping our clients fill their technical staffing needs on a contract, contract-to-direct and direct hire basis. Triad is locally owned and operated, with a large network of qualified engineering professionals throughout New England . Please contact us at 781-273-1880 or visit www.triad-eng.com for more information on how we can help you achieve your technical hiring goals.

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