Home Back Issues September 2009 A temporary setback in jobs

A temporary setback in jobs

| Print |  Email
Archives - September 2009
Thursday, August 20, 2009

The unemployed aren’t the only ones scrambling for work these days; staffing agencies are also feeling the pain of high unemployment. Whenever there’s a recession the employment services industry is hit first as companies shave off their temporary help.

“Temp employees are the first to go when a company is cutting costs,” says Molly Kalomiris, general manager of Portland-based Northwest Staffing Resources.

According to the Oregon Employment Department, between June 2007 and June 2009 the number of jobs in the employment services industry in Oregon dropped 35%, decreasing slightly more than the national average.

Fewer temp jobs also means a drop in revenue for staffing agencies. Barrett Business Service’s net revenue is down 22.8% in the first quarter this year. Portland-based Employers Overload has seen a 40% drop in traditional business, and relies on the nontraditional role of managing crews on site to stay in business. Those few staffing firms that have tapped into a niche are still growing, such as Lake Oswego-based United Human Capital Solutions, which focuses on health care staffing, and California-based Mainz Brady Group, which specializes in information technology staffing in Portland.

Agencies stay in business because the recession also creates a need for temporary workers, though permanent placements and temp-to-hire positions remain down. After laying off permanent employees, companies turn to staffing agencies to fill in the gaps. Companies are also referring laid-off employees to staffing agencies and when business improves, hiring them through that agency as temporary employees.

Even though there are fewer jobs available, the unemployed continue to turn to staffing agencies to find work. Agencies have seen an increase in applicants, as high as 30% to 40% at Northwest Staffing Resources.

As competition increases, under-qualified applicants apply for any job they can find and over-qualified applicants take lower-level jobs just to get back to work. “People are working at lower salaries than they used to make and they’re so much more qualified,” says Pete Szambelan, Employers Overload CEO. “I’ll tell you, those people are worth their weight in gold.”

With competition for temporary positions fierce, the unemployed continue to encounter challenges as they search for Oregon’s latest endangered species: a job.

JENNY FURNISS
 

More Articles

Spreading the wealth

March 2014
Tuesday, February 25, 2014
HiResBY PAIGE PARKER

A money management firm broadens its reach. 


Read more...

Branching out

March 2014
Tuesday, February 25, 2014
DSC04185BY LINDA BAKER

A blueberry bush is a blueberry bush — except when it’s a blueberry tree.


Read more...

Buy the book

News
Tuesday, March 25, 2014
2 03.25.14 thumb bookshopBY VIVIAN MCINERNY | OB BLOGGER

Oregon is home not only to many fine writers but also several accomplished small publishers.


Read more...

Why I became an educator

News
Tuesday, March 04, 2014
03.04.14 thumbnail teachBY DEBRA RINGOLD | GUEST CONTRIBUTOR

How can we strengthen the performance of institutions charged with teaching what Francis Fukuyama calls the social virtues (reciprocity, moral obligation, duty toward community, and trust) necessary for successful markets and democracy itself?


Read more...

Making faces

News
Thursday, February 20, 2014
02.20.14 Thumbnail ModelsBY VIVIAN MCINERNY | OB BLOGGER

As retailers consolidate and newspapers fold, the business of modeling shifts to ad agencies, apparel companies and new media.


Read more...

Are millennials reshaping politics in the Pacific Northwest?

News
Wednesday, April 02, 2014

MillennialsThumbA new report explores the impact of millennials on Oregon's business and political climate.


Read more...

Small business sales go big

March 2014
Tuesday, February 25, 2014

BY BRANDON SAWYER

Sales of small businesses surged in 2013 according to the biggest Internet marketplace of such transactions, BizBuySell, increasing to 7,056 reported sales, a 24% increase over 2012, when they dropped 7%. Portland Metro sales tracked by the site grew 9% to 73, capping three years of solid growth. On top of that, Portland’s median sale price jumped 67% to $250K, versus just 13% to $180K nationally. Portland was one of just six metros tracked where the median sale price matched the median asking price, with sellers getting, on average, 92% of what they asked.

BTNMarch14 tableBTNMarch14 line


BTNMarch14 piePDXBTNMarch14 pieUSA


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS