The past few years have seen an extreme fluctuation in the American workforce, and staffing employment goes up and down. In the summer of 2022, the number of unemployed is down slightly from 1.3 million in 2020 to 1.2 million today. With such an increase, employers benefit from employee benefits liability insurance protection. Employment is expanding throughout all major industries, with the most significant addition found in health services and social assistance.
Staffing Employment
Given the current positive outlook in staffing employment growth, it’s essential to understand the staffing trends impacting the current environment.
COVID-19 Effects
While the most severe impacts that accompanied the pandemic in 2019 and 2020 are starting to subside, the presence of COVID-19 variants remains an essential variable across all industries. The Omicron variant’s march across the country in late 2021 spurred a return to safety policies in many areas, creating challenges for several local businesses.
The staffing industry will be most affected by the various approaches to vaccine mandates across states and industries, necessitating new methods of tracking and validating vaccination status to comply with the patchwork of policies.
Recruitment Changes
Staffing clients are branching out beyond the traditional job websites. Recruitment efforts are expanding to include social media outlets such as Instagram, Facebook, Twitter, and TikTok. It helps to reach younger candidates and build the agency’s brand.
Online Interviews
The move to virtual everything during the pandemic is not going away. Online interviews eliminate logistical problems for both employers and job candidates. Tech-savvy agencies are also saving time and money by providing onboarding tasks through an online format.
Cyberattack Issues
The number of cyberattacks launched against global businesses increased dramatically during the COVID-19 pandemic. More than 80% of organizations worldwide report cyber threats, with nearly that number experiencing losses from a cyber attack.
The staffing industry is an attractive target for cybercrime due to handling large volumes of confidential information from potential job candidates. Security issues face complications by the increase in employees working from home through cloud or VPN connections.
The Great Resignation
The U.S. Department of Labor reported that 2.9 of the American workforce (4.3 million people) resigned from their places of employment in August 2021. It is the highest number of resignations, highlighting some crucial obstacles facing the staffing industry. Wage inequities and complaints about the work environment and achieving a work-life balance are critical conversations that employers must address. Given this level of employee unrest, employee benefits liability insurance provides a basic level of protection for employers.
The most significant increase in job resignation was evident in the mid-career age group, between 30 and 45. Industries that absorbed a dramatic impact from the pandemic, notably the healthcare industry, also showed a significant increase in resignation rates during this period.
Despite the challenges and mass resignations during COVID, it is easy to see how staffing employment has grown in 2022, and the outlook is optimistic that more growth is on the horizon.
About World Wide Specialty Programs
For the last 50 years, World Wide Specialty Programs has dedicated itself to providing the
optimal products and solutions for the staffing industry. As the only insurance firm to be an ASA
commercial liability partner, we are committed to that partnership and committed to using our
knowledge of the industry to provide staffing firms with the best possible coverage. For more
information about Staffing Professional Liability Insurance or any other coverage, we have
available to protect your staffing business, give us a call at (877) 256-0468 to speak with one of
our representatives.