Office Staffing & Temp Agencies in California
The Office Staffing and Temp Agencies industry in California has experienced strong growth over the five years to 2017. The use of temporary employees has grown considerably over the past five years as businesses have increasingly taken advantage of the ability to rapidly expand and contract operations as needed. The unemployment rate in California has fallen dramatically and is now nearly half of what it was in 2012. Rather than reduce temporary labor in favor of permanent workers, many companies have chosen to rely more heavily on temporary staff to stay flexible. The number of industry firms has consistently risen during the five-year period in response to growing demand, boosting competition. Over the five years to 2022, industry revenue growth is forecast to decelerate. A forecast increase in the unemployment rate will negatively impact demand for industry services. Rapid growth in the state's minimum wage is expected to drive many manufacturers and businesses reliant on low-skill labor out of the state, while others shift hiring toward permanent placements as a way to save on labor costs.
Office staffing and temp agencies supply businesses with workers for limited periods of time to supplement existing staff. Although temp workers remain employees of the temp agency, temp agencies do not provide direct supervision of their employees at clients’ work sites.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.
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