Labor Market Shows Robust Demand for Temporary Workers in Q1 According to IQNdex Report
Demand for Specialized Technical Skills is a Leading Driver of Rate Increases in Contingent/Non-Permanent Labor Market
DENVER, April 18, 2013 /PRNewswire/ — During the first quarter of 2013, the U.S. economy demonstrated strong demand for temporary/non-permanent workers according to the most recent IQNdex report, which provides insights about the segment of the U.S. labor market comprised of non-permanent workers such as freelancers, contract workers, temps, staffing agency employees and independent professionals. During Q1 2013, the Master IQNdex rose 0.6 percentage points on the IQNdex, reflecting an acceleration of rate growth over the prior quarter.
“While the overall job market remains weak, the Q1 IQNdex report shows that demand for non-permanent workers in the U.S. is strong, indicating that employers are utilizing temporary labor as a means of expanding their workforce rather than traditional full-time employees,” said Gary Pollard, VP, Information Products at IQNavigator. “This continues a macro trend we have seen in the overall labor market over the past couple of years as companies have taken a cautious approach to hiring. This demand for non-permanent workers may be a precursor of traditional hiring. The data shows that companies are hiring people with specialized skills who spearhead growth-oriented projects that often lead to the hiring of traditional employees at a later date.”
The Master IQNdex is based on analysis of millions of data points across all geographic areas of the U.S. and across four major job categories. To read further analysis of temp labor bill rates broken down by geographic region and job sector, download the most recent IQNdex report.
Key insights in the Q1 2013 IQNdex report include the following:
- The Master IQNdex rose from 106.7 to 107.3 over the course of Q1, showing significant upward pressure on bill rates for temporary workers as strong demand continued during the quarter.
- Of the half million new jobs created nationwide during the quarter, almost 11 percent were contingent labor roles.
- Temp labor utilization is returning to levels not seen since 2006 and temporary bill rates are increasing faster than direct hire employment costs.
- Bill rates in the IT job sector experienced an upswing, rising more than 6 points since March 2012, to 105.8. Hourly bill rates for all types of software developers have risen 12 percent over the past two years, with roles requring mobile application development experience rising 14 percent.
To read the full Q1 2013 IQNdex report, please visit http://www.iqntelligence.com.
IQNavigator is the proven leader in services procurement solutions, helping global enterprises better manage all types of procured services and their non-employee workforces around the world. With over 5.2 million users from over 125 countries worldwide accessing the IQNavigator platform, IQN is localized in 40 countries and 14 languages. As the only Vendor Management System (VMS) with true mobile capabilities, IQNavigator consistently ranks as the best SOW functionality in independent surveys. IQNavigator’s cloud-based VMS software processes tens of billions of dollars in yearly services spend, enabling clients to intelligently manage and optimize the cost-effectiveness, compliance, visibility and efficiency of complex services procurement and contingent workforce programs. For more information about IQNavigator and how its industry-leading offerings are helping many of the world’s most respected companies, visit www.IQNavigator.com.