Executive Summary - Line of Credit

Executive Summary Line of Credit

By Tiffany Wright

There have been astounding changes and developments during the evolution of the staffing agency in its 50-plus years of existence. Traditionally, the biggest sector served by the industry has been administrative support. These support services are still in high demand. The personnel supply services sector, which includes the staffing industry, is projected to grow rapidly over the rest of the decade as the economy expands. In fact, the U.S. Bureau of Labor Statistics (BLS) predicts that more jobs will be created in personnel supply services than in any other industry over the next few years. Further, BLS forecasts that personnel supply services will be the fifth fastest-growing industry through 2010. The BLS also projects greater demand for administrative support personnel, and anticipates that between 2000 and 2010, close to 2.2 million new jobs will be created in this field.

Office and clerical accounts for roughly one-third of the staffing industry's revenue and payroll; industrial also accounts for one-third. From 1992 through 2000, the industry saw a steady increase in revenue and participation, and was credited with helping to strengthen the U.S. economy through heightened productivity and labor market competition. According to the American Staffing Association (ASA), labor markets are beginning to tighten. Businesses are finding that it is becoming more difficult to find talent on their own. Staffing industry sales figures for the second quarter of 2000—the industry's peak year— totaled $15.9 billion.