Job Market Jungle

Professional staffing firms in the Los Angeles area are finding an increased demand for their services, although many of the positions are for temporary jobs and not full-time work. Lingering uncertainty about the direction of the economy is keeping employers from hiring full-time employees, staffing executives said. Demand for part-time workers was strong in some industries, such as health care and retail, mirroring the July national employment statistics from the U.S. Department of Labor. “This recovery is slow and methodical, but no one is hiring in mass,” said Will Marzullo, the metro regional director for Manpower in Encino. The firm serves multiple industry sectors, including aerospace, business services, entertainment and health care. The American Staffing Association said in its July report that staffing employment had improved by 3.6 percent compared to July 2010. The ASA Staffing index for July was at 88, a measure of the number of people employed in temporary and contract work on a weekly basis. Since January, the weekly index has fluctuated in the low to mid-80s. (The baseline value for the ASA Staffing Index, was set at 100 in June 2006). Hiring through staffing companies is a reliable indicator as to what employers are doing because when there is no hiring those companies are the first to feel the effects, said Diana Skullr, executive director of trade organization California Staffing Professionals. “If they (employers) are willing to spend to get a qualified candidate that is a good sign because they are investing in their business,” Skullr said. The Professional Staffing Companies list compiled by the San Fernando Valley Business Journal shows that more than half the companies increased the number of workers placed in 2010 compared to 2009. All companies disclosing revenues also showed an increase in 2010. Returning as the No. 1 company is Mediscan Staffing Services, based in Woodland Hills, followed by Manpower at No. 2 and Aerotek at No. 3. In 2010, Mediscan placed 469,550 workers. Mediscan places workers in health care and related positions in 30 states, primarily in temporary positions of three to nine months, said Emily Serebryany, president of the company’s nursing division. Mediscan is seeing a strong demand for certain positions in which there are a shortage of practitioners, such as occupational therapists, emergency room and intensive care unit nurses and speech pathologists, Serebryany said. “Based on their set of skills those people are always in demand because there are not enough of them,” she added. Manpower was also strong in placements in health care positions, entertainment jobs and had a good summer with hospitality and tourism placement, Marzullo said. Manufacturing and construction positions stayed flat, while government jobs were down, Marzullo said. “We expect a kick in retail with the new school year,” he added. Health care jobs increased nationally in July by 31,000, according the Labor Department. Over a 12-month period, health care employment grew by nearly 300,000, the department said. Retail jobs showed national growth in July, mainly at health and personal care stores, the department said, adding manufacturing also added jobs during the month. Personnel Plus in Granada Hills has been placing workers in manufacturing positions with medical device makers and machine shops serving the aerospace industry, said President Patty Campochiaro. Personnel Plus was No. 6 on the list, moving up two spots from 2010. Like Manpower’s Marzullo, Campochiaro sees a reluctance to hire full-time workers, and her orders fall into the temporary to hire category. Businesses have the cash flow but not the will to commit, she said. “Companies are treading lightly,” Campochiaro said. Equis Financial Staffing, however, is seeing a different picture. Its direct hire group has been busy, said President Carrie Nebens, although that may have something to do with the firm specializing in financial and technical positions, both of which have lower unemployment rates. “I think clients are picky,” Nebens said. “If you have the right person, they seem willing to hire.” While of the opinion the job market is improving, Nebens said the market does favor employers who can hold out for the candidate with a stable work history, shows technical competency, and helps the bottom line. Equis ranked No. 7 on the list with 500 placements in 2010, up three spots from the previous list. While staffing firms may be doing big business with temporary placements that is still a good first sing in a labor recovery, Marzullo said. Significant change in employment, however, won’t happen until the second half of 2012 as the momentum picks up, Marzullo said. “I think 2013 is the big recovery year,” he added. Download the 2011 SFV’s PROFESSIONAL STAFFING COs list (pdf)