Industry Analysis & Industry Trends
The Temporary Staff Services industry provides skilled and unskilled labour to client companies, usually on a short-term basis. Demand for these staffing services is influenced by several factors. The national unemployment rate affects industry demand, with higher unemployment generally limiting demand growth for temporary staff. In addition, business outsourcing influences demand, with greater outsourcing generally having a positive effect on the industry. The performance of client industries also affects the industry, with stronger growth in downstream sectors contributing to industry growth. Greater demand from the construction and healthcare sectors over the past five years has had a positive influence on the industry... purchase to read more
Industry Report - Industry Investment Chapter
Given its service orientation, the industry is highly labour-intensive. The industry’s labour intensity level is determined by the ratio of labour to capital. Direct wage costs and depreciation expenses from the industry cost structure are used as proxies for labour and capital. In 2016-17, depreciation is estimated to account for 0.4% of industry revenue, with wages estimated to make up 69.0%. These figures show that for each dollar required for labour costs, approximately $0.01 will be invested in the use and replacement of capital equipment, vehicles and computers during the year. This indicates the industry has low capital requirements.
The contract labour hire service segment is also a major reason for the industry’s high labour intensity... purchase to read more