An employment agency's major function is to place people
into short- or long-term positions. The industry has
been positively affected by the boom in technology,
the government's efforts to get more people off welfare
and into employment, the shift from corporate paternalism
to the independent portability of employment skills,
and the growing need for professionals on short-term
bases. One cannot discount the role of temporary employment
firms as a try-before-you buy means of finding full-time
employees. Employment agencies are also beginning to
offer retirement and health care benefits.
Approximately three million workers in the United
States use employment agencies to find temporary work.
During the 1990s staffing services was one of the
fastest growing segments of the U.S. economy, and
temp agency jobs doubled between 1994 and 2000. The
financial impact of temporary placement services is
evidenced by Adecco, the world's largest providers
of temp workers, which posted revenues of $18.2 billion
in 2002. By the early 2000s, nearly one in six young
workers was expected to use an employment agency before
the age of 35.
Employment agencies are susceptible to changes in
the economy. In a strong economy, with low unemployment
rates, candidate numbers tend to be lower, but many
businesses come knocking, in need of help to identify
high quality employees in a tight job market. Agencies
may even have difficulty filling a customer's request
for employees. When the economy slumps, however, the
number of people looking for work increases, and candidates
flood the employment offices in search of work. With
so many available workers vying for so few new jobs,
in a recessive economy employment agencies tend to
find themselves with too many potential employees
and not enough business clients.
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