Contingent Labor: Helping the U.S. Embrace Change | TargetCW
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Contingent Labor: Helping the U.S. Embrace Change

A wise man adapts himself to circumstances, as water shapes itself to the vessel that contains it. 

–Chinese Proverb

The staffing industry has spent so much energy preparing for changes in our nation’s health care system. The Affordable Care Act (ACA) Individual Mandate has been in effect since 2014, requiring our nation’s population to purchase at least the minimum ACA qualified insurance for themselves and their dependent children. With the mandate in full swing, how has the staffing industry been affected by the regulations?

Contingent Labor

According to the U.S. Bureau of Labor Statistics, in July of 2014, almost 2.9 million temporary jobs equaled 8.13 percent of all employment in the country which is higher than the 6 percent predicted for the entire year. By 2020 temporary or “freelance” workers will reach 40% of the U.S. workforce, according to a study conducted by Intuit in 2010.

The number of initial unemployment insurance claims has dropped from roughly 344,000 to 289,000 in part because of the increase in utilization of contingent workforce. The unemployment rate of 6.1%, as of June of 2014, has settled to the point of “natural rate” which experts say is considered full employment with little inflation, according to the American Staffing Association (ASA). Workers once forced to find employment from multiple employers or agencies to achieve full-time status, and/or seeking at least the minimum health care coverage from the Exchange in order to adhere to ACA federal regulations, now have a solution. Contingent workforce agencies, like TargetCW, provide a low cost solution for employers wishing to provide health care that meets the ACA mandate requirements while maintaining and growing the size of their labor force.

“The role of the staffing industry has transformed the evolving U.S. economy and now creates jobs faster than the overall economy” says the ASA. Like it or not, the ACA Individual Mandate legislation is here to stay… for a while, at least, and contingent labor will continue to grow and so will the need for adapting to change.