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

Updated: Disrupting innovation

News
Tuesday, July 08, 2014
070814 thumb disputive-innovationBY LINDA BAKER  | OB EDITOR

The New Yorker recently published a sharply worded critique of “disruptive innovation,” one of the most widely cited theories in the business world today. The article raises questions about the descriptive value of disruption and innovation  — whether the terms are mere buzzwords or actually explain today's extraordinarily complex fast changing business environment. 

Update: We checked in with Portland's Thomas Thurston, who offers his data driven take on the disruption controversy.


Read more...

100 Best Green Companies Keynote Speech

News
Friday, May 30, 2014

green2014-069Watch the 2014 100 Best Green Companies keynote speech by Eric Friedenwald-Fishman.


Read more...

Understanding Oregon medical marijuana dispensary tenants

News
Friday, June 13, 2014
061314 thumb grassrentBY CLIFF HOCKLEY | OB GUEST BLOGGER

This article summarizes the key considerations a building owner must keep in mind when thinking about leasing to a medical marijuana dispensary.


Read more...

2014 Best Green Companies to Work For announced

News
Wednesday, May 28, 2014

100BestGreenMore than 350 people turned out today for Oregon Business magazine’s sixth annual celebration of the 100 Best Green Companies to Work For in Oregon.


Read more...

EPA Standards: A breath of fresh air for the region

News
Thursday, June 12, 2014
EPABY ANDREA DURBIN | OB GUEST BLOGGER

Last week, the Obama administration took an important and welcomed step in the effort to protect the health and well-being of all Oregonians by limiting carbon pollution from existing power plants.


Read more...

Green Your Workplace seminar held at Nines Hotel

News
Wednesday, May 28, 2014

GreenYourWorkplacelogoOBMOregon Business magazine's  "Green Your Workplace" seminar featured a panel of sustainability experts from small, medium and large organizations. The seminar drew 70 people and took place in the Nines Hotel this morning.


Read more...

Portland: Where young people go to work?

News
Friday, June 06, 2014
UntitledBY KATIE AUSBURGER | OB GUEST CONTRIBUTOR

How to build a hipster-friendly work environment.


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