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REPORT # 21 | January 2014

TRENDLINE
Contingent Worker Forecast and Supply Report

Inside this Issue
Note from the Editor

1

DCR National Temp Wage Index

2

2014: What to Expect in the
Workforce

4

The Manufacturing Revival

6

Temp Jobs Continue Steady Upward 8
Trend
Special Topic: Brazil e-commerce
Market Watch

10

Methodology

14

Note from the Editor
Hello 2014! As we approach a fresh year, the editorial staff at TrendLine is excited to share our
analysis and insights into the staffing industry. Our up-to-date research and in-depth analysis
of industry trends ensure that you have a clear reading of what’s happening in the world of
contingent worker supply and demand and talent acquisition.
The DCR National Temp Wage Index focuses on wage trends over the year and analyzes the
usage of temp workers and related developments in the economy and job market. This month,
we look at the year-over-year increase in the hiring of temp workers, and the utilization of VMS
and MSP services for talent management.
With the start of the new year, we share our predictions of what to expect in the workforce
in 2014, including the top jobs for the year and the pivotal trends that will affect talent
management and sourcing.
Manufacturing has always been a core component of the U.S. economy, and the good news is
that it’s back! Our article on the revival of the manufacturing sector explores the phenomenon
of reshoring and its impact on employment and on temporary workers.
Our next topic focuses on the remarkable upward trend of the temp-staffing sector. The
demand for temporary workers has been growing steadily, and we discuss the factors that are
driving it and in which industries these jobs can be found.

“

“

With the World Cup in a few months, the world’s eyes are on Brazil. Our final and feature article
for the month takes an exclusive, comprehensive look at the e-commerce potential and market
of the country. Keep an eye out for our analysis on what the growing investment in Brazil will
mean for temporary workers.

“Staffing and recruiting firms
report that businesses across several
sectors are beginning to feel more
confident about the economy and
prospects for the months ahead.”
~Richard
Wahlquist,
president
and chief executive officer of the
American Staffing Association.

Ammu Warrier

Ammu Warrier, President

Trend Line: Contingent Worker Forecast and Supply Report. © DCR. All Rights Reserved - 1
DCR National Temp Wage Index

The surge in wage forecasts for temporary workers at the end of 2013 is well justified by the increased demand for
workers, especially in the retail and manufacturing sectors. The manufacturing industry has slowly begun to regain
momentum with a workforce population of over 12 million during the fourth quarter of the year. The last few months
of 2013 saw an increase of more than 25,000 temporary workers compared to the third quarter of the year.
Japan, Brazil, the United Kingdom, and the United States are expected to be the leading economies in 2014 for staffing
industry growth. The U.S.A. is expected to grow by 5%, second only to the United Kingdom. The United States alone
accounts for 30% of the total staffing industry annual sales of $422 billion.
In November 2013, employers added 203,000 jobs to the economy, according to the U.S. Bureau of Labor Statistics,
which exceeds economists’ predictions by 23,000 jobs. The unemployment rate declined to 7 percent from 7.3 percent in
October, and the labor force participation rate increased slightly to 63 percent from 62.8 percent in the previous month.
Major job gains came from the health care, transportation/warehousing, and manufacturing industries. Temporary
help employment added 16,400 new jobs in November, up 0.6 percent from October 2013 for a total of 2.78 million
jobs. On a year-over-year basis, temp jobs were up by 8.6 percent in November.
The U.S. temporary employment penetration rate, a measure of temp jobs as a percentage of total employment,
reached its all-time high (set in April 2000) in November 2013 at 2.03 percent.

“
“

“We believe the current record high usage of temporary staffing is indicative of a gradual upward secular shift in the acceptance and
adoption of temporary staffing, and the role that it plays in giving businesses added flexibility in managing their workforce.” ~Timothy
Landhuis, senior research analyst at Staffing Industry Analysts.

Trend Line: Contingent Worker Forecast and Supply Report. © DCR. All Rights Reserved - 2
DCR National Temp Wage Index

Year-over-Year Growth in Temp Jobs, Seasonally Adjusted

Small and Medium Sized Companies Engage More Temps

A survey conducted by Lucas Group and published by Staffing Industry Analysts (SIA) in October 2013 showed that 42 percent of
small- and medium-sized companies felt more positive about the hiring of contract workers compared to a year ago. The survey
found that 49 percent of these companies plan to hire a combination of contract and permanent employees.

“

The Usage of VMS and MSP Solutions

Staffing Industry Analysts (SIA) estimates that contingent staffing is going to increase as companies look for more flexibility to
meet market demands. A survey by SIA saw that over half the respondents were currently using a VMS or MSP solution, and
cited the main advantages to be a faster hiring process, lowered cost, decreased workload, and enhanced tracking and reporting
capabilities. The biggest challenge was uncovered to be the sourcing of unqualified candidates or pools of candidates who were
not a good fit for the organization. High turnover, lack of engagement, lack of communication and contact, loss of control, and
complexity were also on the list of complaints.
According to research by SIA, VMS and MSP spend under management was $100 billion in 2012, up from $84 billion in 2010.

Trend Line: Contingent Worker Forecast and Supply Report. © DCR. All Rights Reserved - 3
2014: What to Expect in the Workforce
Top Jobs for 2014
CareerBuilder in December 2013 released its prediction for high-wage, in-demand jobs for 2014. These jobs cover a large
array of sectors, positions, and median hourly earnings
Projected High-Wage In-Demand Occupations

Median Hourly Earnings

Software developers, applications and systems software

$45.06

Market research analysts and marketing specialists

$29.10

Training and development specialists

$27.14

Financial analysts

$37.34

Physical therapists

$37.93

Web developers

$27.84

Logisticians

$35.08

Database administrators

$37.39

Meeting, convention and event planners

$22.56

Interpreters and translators

$22.39

Petroleum engineers

$63.67

Information security analysts

$41.62

Top Trends for 2014

MBO Partners recently released their prediction of the top three workforce trends for 2014, which include managers finding
their own workers, employers as partners and workers taking more responsibility for their career development.
MBO believes that following on the consumerization of IT with “bring your own device”, talent will also become
consumerized as managers are empowered to source their own workers for specific project needs. Managers will be able
to build their own teams and procure the help they need on a project-by-project basis, and to realize this potential Human
Resources and Procurement will collaborate to meet the challenge of this democratization of talent sourcing while retaining
governance to control spend and compliance requirements. The employer-employee relationship will also continue to
evolve as companies play less of a parent role, and more of a partner role by providing more self-source programs to
employees for items traditionally associated with the employment contract, such as health, insurance, and retirement
benefits. Finally, workers will claim a greater control over their work-life balance and career, transitioning to a self-employed
professional mindset.

“

“

“As the ball drops on 2013, American workers will move in larger droves to self-employment, with over 1 million more Americans
joining the self-employed ranks in 2014. American professionals are adjusting to a sea change in how work gets done.” ~Gene Zaino,
CEO and President of MBO Partners.

Other key trends include:

• The impact of health care reform costs on company’s sourcing decisions, and an increase in hiring temp workers to avoid
penalties.
• Software-as-a-service for workforce system needs.

• Point technology solutions that help companies solve single problems, despite the cost associated with separate
technological infrastructure, inconsistent experience, and multiple vendors.
Trend Line: Contingent Worker Forecast and Supply Report. © DCR. All Rights Reserved - 4

“
2014: What to Expect in the Workforce
• Addressing the skills gap and focusing on STEM.
• HR will continue to focus on compliance for compensation, wages, new-hire orientation, payroll, recruitment
and hiring, separations, and performance management, while also adding immigration to their umbrella, as U.S.
Citizenship and Immigration Services starts to move down market and look at smaller and medium-sized
businesses.
• Companies will invest more in business analytics and big data as they strive to increase transparency, improve
decision-making, and identify new opportunities.
• Large number of Baby Boomers leaving the workforce.
• Transition from investments that are tech-focused to being more people-focused.
• More companies will provide wellness programs, using financial rewards and penalties to promote healthier
behaviors, as they realize that they save more money and are more productive and effective with a healthier
workforce.

Industry experts predict the use of job boards to decrease in 2014, as recruiters seek out more effective and
meaningful ways to reach candidates. Social media in 2013 has gained popularity as a recruiting channel, as these
platforms allow employers to make relevant connections. Jobvite.com reports that this year, 94% of employers used
social networks for recruiting. More

“

“

The Decline of Job Boards

“More smaller companies and even midsize companies are looking at your online footprint first before giving you an interview to see if
you would fit into the corporate culture.” ~Dan Schawbel, workplace expert and keynote speaker, New York Times best selling authore
of Promote Yourself

Trend Line: Contingent Worker Forecast and Supply Report. © DCR. All Rights Reserved - 5
The Manufacturing Revival
The latest data from the U.S. Bureau of Labor Statistics shows that for the first time since April 2009 the workforce
population of the manufacturing industry was over 12 million jobs. This reveals a very optimistic anticipation of the
manufacturing revival and employment generation in manufacturing.

“

A Senate report released in December 2013 showed that the U.S. manufacturing industry has added over 500,000 jobs
since 2010, and exports of domestic-made goods rose 38 percent during this time. The industry currently accounts for
almost 12 percent of the U.S. gross domestic products, contributing $1.87 trillion to the economy in 2012.

“

“America is a country that innovates, makes things and exports to the world, and manufacturing has long been an engine of economic
growth and a key source of good jobs.” ~Senator Amy Klobuchar of Minnesota

The Senate study found that during the recession, factory automation and the moving of production to lower-cost
countries drove job cuts in manufacturing. However, in the past few years, the rise in shipping costs and foreign labor
costs is prompting companies, such as Caterpillar, General Electric and Ford Mod Motor Co., to return to domestic
production, a phenomenon known as “reshoring”. A recent article in the Financial Times pointed out that 21 percent of
large manufacturers are already reshoring production to the U.S., or plan to do so in the next two years. Additionally,
foreign companies such as Lenovo and BASF are opening factories in the United States.
Manufacturing giants such as 3M, Polaris, Toro, Valspar, and Ecolab have been reporting healthy sales, another
indication that manufacturing recovery is underway. Manufacturing has always had a key role in the U.S. economy.
According to an outlook by Habif, Arogeti & Wynne, if U.S. manufacturing were its own country, it would represent the
10th largest economy in the world. Due to its size, the trends in this industry generally have a ripple effect on the rest
of the country’s economy and employment.

Impact on Temp Workers
In 2012, the Boston Consulting Group predicted that higher exports and reshoring would add 2.5 million to 5 million
manufacturing and related services jobs by 2020.
In a recent study, 83 percent of manufacturers said they were experiencing moderate to severe shortages of highly
skilled workers, with approximately 600,000 high-skill manufacturing jobs currently unfilled nationwide. According to
Senator Klobuchar, each manufacturing job today supports an additional 1.6 jobs, and each advanced manufacturing
job, such as in engineering and research, creates 4.9 other jobs.
Research by the Society of Human Resource Management (SHRM) also indicates that most manufacturers are
hiring, but have difficulty finding full-time workers with the skills they require. Due to the skills gap, manufacturers are
increasingly turning to temp workers.
Lehigh County in Pennsylvania, a region where manufacturing is a major industry, has a 70 percent higher temporary
workforce than the rest of the country. Manufacturing jobs have an average annual earning of $66,150 compared to
the overall average of $52,789.
In November 2013, Ariens Company sought out 150 temp workers to build snow throwers and lawn-and-garden
equipment, and planned to hire another 150 workers in the first two months of 2014. According to company
spokeswoman, Ann Stilp, some of the jobs could be temporary, but many would stay on as year-round workers.
Recently, Harley-Davidson added 100 temporary jobs to prepare for production of model-year 2014 motorcycles.
The company used staffing agencies and its corporate website to recruit temporary workers for jobs that pay
Trend Line: Contingent Worker Forecast and Supply Report. © DCR. All Rights Reserved - 6
The Manufacturing Revival
roughly $16.75 to $23.30 per hour. The company is also seeking an additional 400 temp workers at its York, PA plant, and 60
seasonal workers for a 10-month work period in Tomahawk, WI.
Industry experts believe that manufacturing companies favor incorporating temporary workers into their hiring strategy for multiple
reasons. First, it allows them workforce flexibility to accommodate growth fluctuations. Second, it offers them the opportunity to try
out workers for highly skilled positions before offering them permanent employment. For workers, a short-term job at a manufacturing
plant is a great way to sharpen workplace skills.
In 2012, the Boston Consulting Group predicted that higher exports and reshoring would add 2.5 million to 5 million
manufacturing and related services jobs by 2020.
In a recent study, 83 percent of manufacturers said they were experiencing moderate to severe shortages of highly skilled
workers, with approximately 600,000 high-skill manufacturing jobs currently unfilled nationwide. According to Senator Klobuchar,
each manufacturing job today supports an additional 1.6 jobs, and each advanced manufacturing job, such as in engineering and
research, creates 4.9 other jobs.
Research by the Society of Human Resource Management (SHRM) also indicates that most manufacturers are hiring, but have difficulty
finding full-time workers with the skills they require. Due to the skills gap, manufacturers are increasingly turning to temp workers.
Lehigh County in Pennsylvania, a region where manufacturing is a major industry, has a 70 percent higher temporary
workforce than the rest of the country. Manufacturing jobs have an average annual earning of $66,150 compared to the overall
average of $52,789.
In November 2013, Ariens Company sought out 150 temp workers to build snow throwers and lawn-and-garden
equipment, and planned to hire another 150 workers in the first two months of 2014. According to company spokeswoman,
Ann Stilp, some of the jobs could be temporary, but many would stay on as year-round workers.
Recently, Harley-Davidson added 100 temporary jobs to prepare for production of model-year 2014 motorcycles. The company used
staffing agencies and its corporate website to recruit temporary workers for jobs that pay roughly $16.75 to $23.30 per hour. The
company is also seeking an additional 400 temp workers at its York, PA plant, and 60 seasonal workers for a 10-month work period in
Tomahawk, WI.
Industry experts believe that manufacturing companies favor incorporating temporary workers into their hiring strategy for multiple
reasons. First, it allows them workforce flexibility to accommodate growth fluctuations. Second, it offers them the opportunity to try
out workers for highly skilled positions before offering them permanent employment. For workers, a short-term job at a manufacturing
plant is a great way to sharpen workplace skills.
Manufacturing Employment Trend

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Temp Jobs Continue Steady Upward Trend
The number of workers provided by staffing agencies has been on an upward trend with 2.74 million workers
employed in October 2013, a gain of 57 percent from August 2009. Meanwhile, all other non-farm payroll jobs are up
an average of 4 percent during the same time period. According to staffing industry executives, these increases were
realized across an array of positions from secretarial to blue-collar to professional and technical services.
Temp Staffing, by Sector

Experts attribute the strong growth of the staffing sector to employers’ uncertainty of the future and continued
sluggish economic growth. Steven Berchem of the American Staffing Association says, “The economic policy
uncertainty…has undoubtedly played a role. Uncertainty can be good for the staffing industry.” According to Berchem,
during the recession, temp jobs encompassed one in ten jobs, but are now “responsible for more than 16% of net
employment gains.”

Trend Line: Contingent Worker Forecast and Supply Report. © DCR. All Rights Reserved - 8

“
Temp Jobs Continue Steady Upward Trend
The Bureau of Labor Standards expects the employment services industry to grow at a rate two-thirds faster than
overall employment, with 631,000 more temp jobs in 2020 than in 2010. In 2013 alone, the American Staffing
Association says the number of U.S. workers employed in temporary or contract positions has increased by 18.2
percent. In November 2013, staffing employment was up 6.9 percent from the same period in the previous year.
A report by Staffing Industry Analysts showed that spend of contingent labor under management reached $100 billion
in 2011, a 16 percent increase from 2010 and indicative of an overall growth trend.
Employment, by Sector

“

“

Economists expect temp job numbers to soar for December 2013 and January 2013 as well, partly due to seasonal
hiring. According to the National Retail Federation, retailers are expected to hire between 720,000 and 780,000
seasonal workers for the 2013 holiday season, a 13 percent increase from 2011. A CareerBuilder survey of 2,099 hiring
managers revealed that 39% of retail hiring managers plan on hiring seasonal workers. Also 18% of information
technology employers, 16% of leisure and hospitality employers, and 16% of financial service employers plan to hire
seasonal workers. Nearly half of all U.S. employers plan to transition seasonal workers into full-time, permanent staff.
A variety of types of job seekers will benefit from seasonal hiring, with 17 percent of employers saying that they tend
to hire retirees, and 34 percent seek experienced non-retired workers. Another 45 percent target college students.

“Seasonal jobs are a great way to get a foot in the door and often have the potential to turn into permanent, full-time employment”
~Anna Sidana, Vice-President at BrightEdge

Trend Line: Contingent Worker Forecast and Supply Report. © DCR. All Rights Reserved - 9
Special Topic: Brazil e-commerce Market Watch
Over the coming couple of years, the entire world will be focused on Brazil as it plays host to two of the largest athletic
events, the World Cup in 2014 and the 2016 Olympics. The largest country in South America easily holds the position
of one of the world’s most promising emerging nations.
Brazil offers immense opportunities for e-commerce companies that want to expand their reach. With a population of
over 200 million, Brazil is among the top 10 wealthiest countries in the world, according to the International Monetary
Fund.

“

The middle class represents the largest potential consumer base in Brazil, far outpacing the Middle East, Asia, and
Africa in Internet and social media market penetration. Retail sales per capita in Brazil have grown 12 percent per
year for the past four years to reach $5,514, making private consumption in the country higher than World Private
Consumption. Since 2002, there has been a continuous rise of the middle class and a steady decline in the near poor
and working poor populations. Compared to Europe, China, India, and the United States, Brazil’s aggregate demand
contribution is substantially higher.

“

“B2C eCommerce has benefitted from the growth of the middle class in Brazil, but consumers from lower income groups also have
begun to be comfortable shopping online. There were over 40 million online shoppers in Brazil in H1 2013, with the numbers expected
to top half a hundred million by the end of 2013.” ~yStats.com in B2C eCommerce Report 2013.

With this high percentage of net-savvy, well-off consumers, and a strong and stable economy and political
environment, e-commerce in Brazil is set to flourish, prompting local and international businesses to invest in
the country. The country’s rapidly rising economy, high levels of disposable income, and well-established online
framework makes it an attractive area for investment.

E-commerce and its subset, mobile commerce (m-commerce) addresses the broader prospect of an economy in terms
of connecting consumers to the outside world through internet and wireless technology. The application is not limited
to retail but also has wider prospects such as education, social development, employment, and accessibility to faster
and more accurate information.
While Brazil’s e-commerce market has risen notably in recent years, with an annual compound growth rate of 43.5
percent over the past six years, there is still space for new and early entrants. Currently major players such as Amazon
and eBay have not entered the market.
The biggest inhibitors have been the lack of venture capital, risk capital, and the amount of time it takes to reach a
break-even point. According to the latest income tax rules, profits gained in Brazil and remitted abroad were subject to
withholding taxation of 15 percent.

Trend Line: Contingent Worker Forecast and Supply Report. © DCR. All Rights Reserved - 10
Special Topic: Brazil e-commerce Market Watch
Consumer Behavior

New consumers have exhibited confidence in e-commerce sites, with 47 percent of e-consumers using a debit card to
make their first purchase on the Internet. Female consumers have a higher debit card usage than males.
Brazil’s Internet Demographics
Population > 16 years with Internet access

79.9 Million

Active Members (million)	

47.5 Million

Time Navigation/Month (hrs.)	

49:06 Hours / Month

Average time spent on each page viewed (sec)	

00:47 sec

Brazilians on average spend 27 hours per month on the Internet (compared to the global average of 24.7 hours), with
8 hours monthly on social media sites. Internet engagement of Brazil is the highest in Latin America and the seventh
highest in the world. Mobile usage in Brazil is also the highest in the region with 23.3 percent of the population using
their phones to access the Internet.
Employment, by Sector

Per capita income is a significant indication of the purchasing power of the consumers of a country. Brazilian per capita
income increased 3.6 times over the past ten years, following the same upward trend of internet users. As the size of
each consumers’ walletincreases, so does their access to e-commerce, which is a positive sign for companies looking
to invest in the country.
Internet Usage by Country

Trend Line: Contingent Worker Forecast and Supply Report. © DCR. All Rights Reserved - 11
Special Topic: Brazil e-commerce Market Watch
In a recent survey, it was found that Brazilians spend time online to seek out new brands and products. Eighty percent
of those surveyed use the Internet to discover new brands and research products. Online retailers are continuing to
shift advertising dollars away from traditional channels such as television, to spend more in digital ads.
How Brazil Compares to Other Emerging Economies

Although China tops the list of GDP among the BRIC countries at approximately 3.71 times higher than Brazil, the
latter’s per capita GDP is on par. This is a positive indicator of consumer potential in Brazil and their growing
purchasing power.
BRIC GDP per capita Comparison

Trend Line: Contingent Worker Forecast and Supply Report. © DCR. All Rights Reserved - 12
Special Topic: Brazil e-commerce Market Watch
Consumption in Brazil

The Final Consumption Expenditure trend in Brazil is strongly indicative that e-commerce is a large source of consumer
potential. This figure is the market value of all goods and services, including durable products (such as cars, washing
machines, home computers), purchased by households. It excludes purchases of dwellings but includes imputed rent
for owner-occupied dwellings, and also includes payments and fees to the government to obtain permits and licenses.
The booming retail market in Brazil is also evident through the rise in retail trade. Overall, retail sales were up 7.3
percent in the first half of 2013, and up nearly 9 percent over the past 12 months, surpassing the percentage growth
in Brazil’s GDP. Large areas of purchase include clothing and fashion accessories, and computer and technology goods.
Currently, the fashion and accessory industry makes up over 12 percent of all online retail sales.

What’s Hot in E-commerce?

Worldwide e-commerce sales are expected to reach $1.4 trillion in 2013. Travel is the largest e-commerce category
currently, led by airline ticket sales. In the United States, it is estimated that business and leisure travelers spent $85.7
billion online in 2012, representing nearly 58 percent of total online spending. This is expected to increase to $110.2
billion in 2016.

Predictions for Brazil’s E-commerce Growth
Using microeconomic data from Brazil, our analysts forecasted the size and growth of Brazil’s e-commerce market.
Brazil’s e-commerce market is estimated to grow by more than 1 billion dollars in 2014, with an approximate growth
rate of 10% from 2013. The GDP per capita will not fluctuate much in 2014 and 2015, and Internet business growth is
a major deciding factor for the market.
The federal government of Brazil is launching a national plan to provide cheap broadband Internet access, which could
potentially substantially increase the size of the country’s online population.
According to eMarketer, e-commerce in Brazil is projected to reach $29 billion by end of 2017. The upcoming events,
the World Cup and Olympics, will upgrade the country’s transportation infrastructure, simplifying and expediting the
logistics of shipping goods.

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Special Topic: Brazil e-commerce Market Watch
Estimated Brazil E-commerce Sales

Impact on Temporary Workers
An increased amount of investiture in e-commerce would result in a growth of the supply of jobs in the country. During
the holiday season in 2013, the retail sector experienced a boost resulting in a shortage of temp workers to meet the
demand, with 18,200 temporary jobs unfulfilled.
Retail and industrial sectors offer attractive opportunities for job seekers with competitive compensation, access to
transport vouchers and other perks. The monthly average wage in Brazil for retail has increased by 11.8 percent in the
past year. Retail trade accounts for 70 percent of the temporary job opportunities, where 16,800 positions have not
been filled representing a shortfall of -15 percent.
Traditionally, the industrial sector accounts for 30 percent of seasonal vacancies, of which 3 percent have not been
filled, leaving 1,400 temporary jobs open for workers.
Temp Vacancies in Brazil

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Methodology
The DCR Wage Index is developed to assess the relative movements of temporary wage rates in the U.S. economy. The
wage rates for temporary workers or contingent workforce are based on payments made by staffing firms to these
workers based upon hours worked. Data collected from sources such as Bureau of Labor Standards (BLS) and other
government sites as well as an internal pool of staffing companies and consultants, is aggregated and classified based
on regions and skill categories, to arrive at an aggregate index.
The baseline for the index is set at 100 for January 2007. Index value for a particular month indicates relative wages with
the said baseline and is representative in terms of direction and scale of change. Five years of data has been included
to observe seasonal patterns and distinguish seasonality from long-term wage movements. The data and the model has
been further refined over last six months.
DCR Wage Index combines the exhaustive data from BLS with practical and more recent developments and data from
on-field consultants and clients, to provide timely near-term indications of trends and consistent long-term actionable
and objective information.

Source Data
DCR Work Index uses multiple economic variables to ensure the robustness of its forecasts and cross-validation
of trends.
Key data sources and parameters of interest included and influencing the index are:
Unemployment data
Gross Domestic Product
Prime rate of interest
New and seasonal Job openings
Non Form employment
Job Opening
All Export
All Import
Average Hourly Earnings of All Employees Total Private
Aggregate consultant data on job market parameters

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Methodology
References
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http://www.e-commerce.org.br/stats.php
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http://www.forbes.com/sites/danschawbel/2013/10/24/the-top-10-workplace-trends-for-2014/2/

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About DCR Workforce
DCR Workforce is an award winning, best-in-class service provider for contingent workforce and services
procurement management. Our proprietary SaaS platform (SMART TRACK) assists in providing customizable VMS
and MSP Solutions to manage, procure and analyze your talent with complete transparency, real-time control, high
performance and decision-enabling business intelligence.
DCR Workforce serves global clientele including several Fortune 1000 companies. Customers realize greater
efficiencies; spend control, improved workforce quality and 100% compliance with our services.
For more information about DCR Workforce and its Forecasting Toolkit (Rate, Demand, Supply and Intelligence)
including Best Practice Portal, visit dcrworkforce.com

For more information call +1-888-DCR-4VMS or visit www.dcrworkforce.com
Public Relations:
Debra Bergevine
508-380-4039
7815 NW Beacon Square Blvd. #224 Boca Raton, FL 33487
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Top jobs and workforce trends to watch in 2014

  • 1. REPORT # 21 | January 2014 TRENDLINE Contingent Worker Forecast and Supply Report Inside this Issue Note from the Editor 1 DCR National Temp Wage Index 2 2014: What to Expect in the Workforce 4 The Manufacturing Revival 6 Temp Jobs Continue Steady Upward 8 Trend Special Topic: Brazil e-commerce Market Watch 10 Methodology 14 Note from the Editor Hello 2014! As we approach a fresh year, the editorial staff at TrendLine is excited to share our analysis and insights into the staffing industry. Our up-to-date research and in-depth analysis of industry trends ensure that you have a clear reading of what’s happening in the world of contingent worker supply and demand and talent acquisition. The DCR National Temp Wage Index focuses on wage trends over the year and analyzes the usage of temp workers and related developments in the economy and job market. This month, we look at the year-over-year increase in the hiring of temp workers, and the utilization of VMS and MSP services for talent management. With the start of the new year, we share our predictions of what to expect in the workforce in 2014, including the top jobs for the year and the pivotal trends that will affect talent management and sourcing. Manufacturing has always been a core component of the U.S. economy, and the good news is that it’s back! Our article on the revival of the manufacturing sector explores the phenomenon of reshoring and its impact on employment and on temporary workers. Our next topic focuses on the remarkable upward trend of the temp-staffing sector. The demand for temporary workers has been growing steadily, and we discuss the factors that are driving it and in which industries these jobs can be found. “ “ With the World Cup in a few months, the world’s eyes are on Brazil. Our final and feature article for the month takes an exclusive, comprehensive look at the e-commerce potential and market of the country. Keep an eye out for our analysis on what the growing investment in Brazil will mean for temporary workers. “Staffing and recruiting firms report that businesses across several sectors are beginning to feel more confident about the economy and prospects for the months ahead.” ~Richard Wahlquist, president and chief executive officer of the American Staffing Association. Ammu Warrier Ammu Warrier, President Trend Line: Contingent Worker Forecast and Supply Report. © DCR. All Rights Reserved - 1
  • 2. DCR National Temp Wage Index The surge in wage forecasts for temporary workers at the end of 2013 is well justified by the increased demand for workers, especially in the retail and manufacturing sectors. The manufacturing industry has slowly begun to regain momentum with a workforce population of over 12 million during the fourth quarter of the year. The last few months of 2013 saw an increase of more than 25,000 temporary workers compared to the third quarter of the year. Japan, Brazil, the United Kingdom, and the United States are expected to be the leading economies in 2014 for staffing industry growth. The U.S.A. is expected to grow by 5%, second only to the United Kingdom. The United States alone accounts for 30% of the total staffing industry annual sales of $422 billion. In November 2013, employers added 203,000 jobs to the economy, according to the U.S. Bureau of Labor Statistics, which exceeds economists’ predictions by 23,000 jobs. The unemployment rate declined to 7 percent from 7.3 percent in October, and the labor force participation rate increased slightly to 63 percent from 62.8 percent in the previous month. Major job gains came from the health care, transportation/warehousing, and manufacturing industries. Temporary help employment added 16,400 new jobs in November, up 0.6 percent from October 2013 for a total of 2.78 million jobs. On a year-over-year basis, temp jobs were up by 8.6 percent in November. The U.S. temporary employment penetration rate, a measure of temp jobs as a percentage of total employment, reached its all-time high (set in April 2000) in November 2013 at 2.03 percent. “ “ “We believe the current record high usage of temporary staffing is indicative of a gradual upward secular shift in the acceptance and adoption of temporary staffing, and the role that it plays in giving businesses added flexibility in managing their workforce.” ~Timothy Landhuis, senior research analyst at Staffing Industry Analysts. Trend Line: Contingent Worker Forecast and Supply Report. © DCR. All Rights Reserved - 2
  • 3. DCR National Temp Wage Index Year-over-Year Growth in Temp Jobs, Seasonally Adjusted Small and Medium Sized Companies Engage More Temps A survey conducted by Lucas Group and published by Staffing Industry Analysts (SIA) in October 2013 showed that 42 percent of small- and medium-sized companies felt more positive about the hiring of contract workers compared to a year ago. The survey found that 49 percent of these companies plan to hire a combination of contract and permanent employees. “ The Usage of VMS and MSP Solutions Staffing Industry Analysts (SIA) estimates that contingent staffing is going to increase as companies look for more flexibility to meet market demands. A survey by SIA saw that over half the respondents were currently using a VMS or MSP solution, and cited the main advantages to be a faster hiring process, lowered cost, decreased workload, and enhanced tracking and reporting capabilities. The biggest challenge was uncovered to be the sourcing of unqualified candidates or pools of candidates who were not a good fit for the organization. High turnover, lack of engagement, lack of communication and contact, loss of control, and complexity were also on the list of complaints. According to research by SIA, VMS and MSP spend under management was $100 billion in 2012, up from $84 billion in 2010. Trend Line: Contingent Worker Forecast and Supply Report. © DCR. All Rights Reserved - 3
  • 4. 2014: What to Expect in the Workforce Top Jobs for 2014 CareerBuilder in December 2013 released its prediction for high-wage, in-demand jobs for 2014. These jobs cover a large array of sectors, positions, and median hourly earnings Projected High-Wage In-Demand Occupations Median Hourly Earnings Software developers, applications and systems software $45.06 Market research analysts and marketing specialists $29.10 Training and development specialists $27.14 Financial analysts $37.34 Physical therapists $37.93 Web developers $27.84 Logisticians $35.08 Database administrators $37.39 Meeting, convention and event planners $22.56 Interpreters and translators $22.39 Petroleum engineers $63.67 Information security analysts $41.62 Top Trends for 2014 MBO Partners recently released their prediction of the top three workforce trends for 2014, which include managers finding their own workers, employers as partners and workers taking more responsibility for their career development. MBO believes that following on the consumerization of IT with “bring your own device”, talent will also become consumerized as managers are empowered to source their own workers for specific project needs. Managers will be able to build their own teams and procure the help they need on a project-by-project basis, and to realize this potential Human Resources and Procurement will collaborate to meet the challenge of this democratization of talent sourcing while retaining governance to control spend and compliance requirements. The employer-employee relationship will also continue to evolve as companies play less of a parent role, and more of a partner role by providing more self-source programs to employees for items traditionally associated with the employment contract, such as health, insurance, and retirement benefits. Finally, workers will claim a greater control over their work-life balance and career, transitioning to a self-employed professional mindset. “ “ “As the ball drops on 2013, American workers will move in larger droves to self-employment, with over 1 million more Americans joining the self-employed ranks in 2014. American professionals are adjusting to a sea change in how work gets done.” ~Gene Zaino, CEO and President of MBO Partners. Other key trends include: • The impact of health care reform costs on company’s sourcing decisions, and an increase in hiring temp workers to avoid penalties. • Software-as-a-service for workforce system needs. • Point technology solutions that help companies solve single problems, despite the cost associated with separate technological infrastructure, inconsistent experience, and multiple vendors. Trend Line: Contingent Worker Forecast and Supply Report. © DCR. All Rights Reserved - 4 “
  • 5. 2014: What to Expect in the Workforce • Addressing the skills gap and focusing on STEM. • HR will continue to focus on compliance for compensation, wages, new-hire orientation, payroll, recruitment and hiring, separations, and performance management, while also adding immigration to their umbrella, as U.S. Citizenship and Immigration Services starts to move down market and look at smaller and medium-sized businesses. • Companies will invest more in business analytics and big data as they strive to increase transparency, improve decision-making, and identify new opportunities. • Large number of Baby Boomers leaving the workforce. • Transition from investments that are tech-focused to being more people-focused. • More companies will provide wellness programs, using financial rewards and penalties to promote healthier behaviors, as they realize that they save more money and are more productive and effective with a healthier workforce. Industry experts predict the use of job boards to decrease in 2014, as recruiters seek out more effective and meaningful ways to reach candidates. Social media in 2013 has gained popularity as a recruiting channel, as these platforms allow employers to make relevant connections. Jobvite.com reports that this year, 94% of employers used social networks for recruiting. More “ “ The Decline of Job Boards “More smaller companies and even midsize companies are looking at your online footprint first before giving you an interview to see if you would fit into the corporate culture.” ~Dan Schawbel, workplace expert and keynote speaker, New York Times best selling authore of Promote Yourself Trend Line: Contingent Worker Forecast and Supply Report. © DCR. All Rights Reserved - 5
  • 6. The Manufacturing Revival The latest data from the U.S. Bureau of Labor Statistics shows that for the first time since April 2009 the workforce population of the manufacturing industry was over 12 million jobs. This reveals a very optimistic anticipation of the manufacturing revival and employment generation in manufacturing. “ A Senate report released in December 2013 showed that the U.S. manufacturing industry has added over 500,000 jobs since 2010, and exports of domestic-made goods rose 38 percent during this time. The industry currently accounts for almost 12 percent of the U.S. gross domestic products, contributing $1.87 trillion to the economy in 2012. “ “America is a country that innovates, makes things and exports to the world, and manufacturing has long been an engine of economic growth and a key source of good jobs.” ~Senator Amy Klobuchar of Minnesota The Senate study found that during the recession, factory automation and the moving of production to lower-cost countries drove job cuts in manufacturing. However, in the past few years, the rise in shipping costs and foreign labor costs is prompting companies, such as Caterpillar, General Electric and Ford Mod Motor Co., to return to domestic production, a phenomenon known as “reshoring”. A recent article in the Financial Times pointed out that 21 percent of large manufacturers are already reshoring production to the U.S., or plan to do so in the next two years. Additionally, foreign companies such as Lenovo and BASF are opening factories in the United States. Manufacturing giants such as 3M, Polaris, Toro, Valspar, and Ecolab have been reporting healthy sales, another indication that manufacturing recovery is underway. Manufacturing has always had a key role in the U.S. economy. According to an outlook by Habif, Arogeti & Wynne, if U.S. manufacturing were its own country, it would represent the 10th largest economy in the world. Due to its size, the trends in this industry generally have a ripple effect on the rest of the country’s economy and employment. Impact on Temp Workers In 2012, the Boston Consulting Group predicted that higher exports and reshoring would add 2.5 million to 5 million manufacturing and related services jobs by 2020. In a recent study, 83 percent of manufacturers said they were experiencing moderate to severe shortages of highly skilled workers, with approximately 600,000 high-skill manufacturing jobs currently unfilled nationwide. According to Senator Klobuchar, each manufacturing job today supports an additional 1.6 jobs, and each advanced manufacturing job, such as in engineering and research, creates 4.9 other jobs. Research by the Society of Human Resource Management (SHRM) also indicates that most manufacturers are hiring, but have difficulty finding full-time workers with the skills they require. Due to the skills gap, manufacturers are increasingly turning to temp workers. Lehigh County in Pennsylvania, a region where manufacturing is a major industry, has a 70 percent higher temporary workforce than the rest of the country. Manufacturing jobs have an average annual earning of $66,150 compared to the overall average of $52,789. In November 2013, Ariens Company sought out 150 temp workers to build snow throwers and lawn-and-garden equipment, and planned to hire another 150 workers in the first two months of 2014. According to company spokeswoman, Ann Stilp, some of the jobs could be temporary, but many would stay on as year-round workers. Recently, Harley-Davidson added 100 temporary jobs to prepare for production of model-year 2014 motorcycles. The company used staffing agencies and its corporate website to recruit temporary workers for jobs that pay Trend Line: Contingent Worker Forecast and Supply Report. © DCR. All Rights Reserved - 6
  • 7. The Manufacturing Revival roughly $16.75 to $23.30 per hour. The company is also seeking an additional 400 temp workers at its York, PA plant, and 60 seasonal workers for a 10-month work period in Tomahawk, WI. Industry experts believe that manufacturing companies favor incorporating temporary workers into their hiring strategy for multiple reasons. First, it allows them workforce flexibility to accommodate growth fluctuations. Second, it offers them the opportunity to try out workers for highly skilled positions before offering them permanent employment. For workers, a short-term job at a manufacturing plant is a great way to sharpen workplace skills. In 2012, the Boston Consulting Group predicted that higher exports and reshoring would add 2.5 million to 5 million manufacturing and related services jobs by 2020. In a recent study, 83 percent of manufacturers said they were experiencing moderate to severe shortages of highly skilled workers, with approximately 600,000 high-skill manufacturing jobs currently unfilled nationwide. According to Senator Klobuchar, each manufacturing job today supports an additional 1.6 jobs, and each advanced manufacturing job, such as in engineering and research, creates 4.9 other jobs. Research by the Society of Human Resource Management (SHRM) also indicates that most manufacturers are hiring, but have difficulty finding full-time workers with the skills they require. Due to the skills gap, manufacturers are increasingly turning to temp workers. Lehigh County in Pennsylvania, a region where manufacturing is a major industry, has a 70 percent higher temporary workforce than the rest of the country. Manufacturing jobs have an average annual earning of $66,150 compared to the overall average of $52,789. In November 2013, Ariens Company sought out 150 temp workers to build snow throwers and lawn-and-garden equipment, and planned to hire another 150 workers in the first two months of 2014. According to company spokeswoman, Ann Stilp, some of the jobs could be temporary, but many would stay on as year-round workers. Recently, Harley-Davidson added 100 temporary jobs to prepare for production of model-year 2014 motorcycles. The company used staffing agencies and its corporate website to recruit temporary workers for jobs that pay roughly $16.75 to $23.30 per hour. The company is also seeking an additional 400 temp workers at its York, PA plant, and 60 seasonal workers for a 10-month work period in Tomahawk, WI. Industry experts believe that manufacturing companies favor incorporating temporary workers into their hiring strategy for multiple reasons. First, it allows them workforce flexibility to accommodate growth fluctuations. Second, it offers them the opportunity to try out workers for highly skilled positions before offering them permanent employment. For workers, a short-term job at a manufacturing plant is a great way to sharpen workplace skills. Manufacturing Employment Trend Trend Line: Contingent Worker Forecast and Supply Report. © DCR. All Rights Reserved - 7
  • 8. Temp Jobs Continue Steady Upward Trend The number of workers provided by staffing agencies has been on an upward trend with 2.74 million workers employed in October 2013, a gain of 57 percent from August 2009. Meanwhile, all other non-farm payroll jobs are up an average of 4 percent during the same time period. According to staffing industry executives, these increases were realized across an array of positions from secretarial to blue-collar to professional and technical services. Temp Staffing, by Sector Experts attribute the strong growth of the staffing sector to employers’ uncertainty of the future and continued sluggish economic growth. Steven Berchem of the American Staffing Association says, “The economic policy uncertainty…has undoubtedly played a role. Uncertainty can be good for the staffing industry.” According to Berchem, during the recession, temp jobs encompassed one in ten jobs, but are now “responsible for more than 16% of net employment gains.” Trend Line: Contingent Worker Forecast and Supply Report. © DCR. All Rights Reserved - 8 “
  • 9. Temp Jobs Continue Steady Upward Trend The Bureau of Labor Standards expects the employment services industry to grow at a rate two-thirds faster than overall employment, with 631,000 more temp jobs in 2020 than in 2010. In 2013 alone, the American Staffing Association says the number of U.S. workers employed in temporary or contract positions has increased by 18.2 percent. In November 2013, staffing employment was up 6.9 percent from the same period in the previous year. A report by Staffing Industry Analysts showed that spend of contingent labor under management reached $100 billion in 2011, a 16 percent increase from 2010 and indicative of an overall growth trend. Employment, by Sector “ “ Economists expect temp job numbers to soar for December 2013 and January 2013 as well, partly due to seasonal hiring. According to the National Retail Federation, retailers are expected to hire between 720,000 and 780,000 seasonal workers for the 2013 holiday season, a 13 percent increase from 2011. A CareerBuilder survey of 2,099 hiring managers revealed that 39% of retail hiring managers plan on hiring seasonal workers. Also 18% of information technology employers, 16% of leisure and hospitality employers, and 16% of financial service employers plan to hire seasonal workers. Nearly half of all U.S. employers plan to transition seasonal workers into full-time, permanent staff. A variety of types of job seekers will benefit from seasonal hiring, with 17 percent of employers saying that they tend to hire retirees, and 34 percent seek experienced non-retired workers. Another 45 percent target college students. “Seasonal jobs are a great way to get a foot in the door and often have the potential to turn into permanent, full-time employment” ~Anna Sidana, Vice-President at BrightEdge Trend Line: Contingent Worker Forecast and Supply Report. © DCR. All Rights Reserved - 9
  • 10. Special Topic: Brazil e-commerce Market Watch Over the coming couple of years, the entire world will be focused on Brazil as it plays host to two of the largest athletic events, the World Cup in 2014 and the 2016 Olympics. The largest country in South America easily holds the position of one of the world’s most promising emerging nations. Brazil offers immense opportunities for e-commerce companies that want to expand their reach. With a population of over 200 million, Brazil is among the top 10 wealthiest countries in the world, according to the International Monetary Fund. “ The middle class represents the largest potential consumer base in Brazil, far outpacing the Middle East, Asia, and Africa in Internet and social media market penetration. Retail sales per capita in Brazil have grown 12 percent per year for the past four years to reach $5,514, making private consumption in the country higher than World Private Consumption. Since 2002, there has been a continuous rise of the middle class and a steady decline in the near poor and working poor populations. Compared to Europe, China, India, and the United States, Brazil’s aggregate demand contribution is substantially higher. “ “B2C eCommerce has benefitted from the growth of the middle class in Brazil, but consumers from lower income groups also have begun to be comfortable shopping online. There were over 40 million online shoppers in Brazil in H1 2013, with the numbers expected to top half a hundred million by the end of 2013.” ~yStats.com in B2C eCommerce Report 2013. With this high percentage of net-savvy, well-off consumers, and a strong and stable economy and political environment, e-commerce in Brazil is set to flourish, prompting local and international businesses to invest in the country. The country’s rapidly rising economy, high levels of disposable income, and well-established online framework makes it an attractive area for investment. E-commerce and its subset, mobile commerce (m-commerce) addresses the broader prospect of an economy in terms of connecting consumers to the outside world through internet and wireless technology. The application is not limited to retail but also has wider prospects such as education, social development, employment, and accessibility to faster and more accurate information. While Brazil’s e-commerce market has risen notably in recent years, with an annual compound growth rate of 43.5 percent over the past six years, there is still space for new and early entrants. Currently major players such as Amazon and eBay have not entered the market. The biggest inhibitors have been the lack of venture capital, risk capital, and the amount of time it takes to reach a break-even point. According to the latest income tax rules, profits gained in Brazil and remitted abroad were subject to withholding taxation of 15 percent. Trend Line: Contingent Worker Forecast and Supply Report. © DCR. All Rights Reserved - 10
  • 11. Special Topic: Brazil e-commerce Market Watch Consumer Behavior New consumers have exhibited confidence in e-commerce sites, with 47 percent of e-consumers using a debit card to make their first purchase on the Internet. Female consumers have a higher debit card usage than males. Brazil’s Internet Demographics Population > 16 years with Internet access 79.9 Million Active Members (million) 47.5 Million Time Navigation/Month (hrs.) 49:06 Hours / Month Average time spent on each page viewed (sec) 00:47 sec Brazilians on average spend 27 hours per month on the Internet (compared to the global average of 24.7 hours), with 8 hours monthly on social media sites. Internet engagement of Brazil is the highest in Latin America and the seventh highest in the world. Mobile usage in Brazil is also the highest in the region with 23.3 percent of the population using their phones to access the Internet. Employment, by Sector Per capita income is a significant indication of the purchasing power of the consumers of a country. Brazilian per capita income increased 3.6 times over the past ten years, following the same upward trend of internet users. As the size of each consumers’ walletincreases, so does their access to e-commerce, which is a positive sign for companies looking to invest in the country. Internet Usage by Country Trend Line: Contingent Worker Forecast and Supply Report. © DCR. All Rights Reserved - 11
  • 12. Special Topic: Brazil e-commerce Market Watch In a recent survey, it was found that Brazilians spend time online to seek out new brands and products. Eighty percent of those surveyed use the Internet to discover new brands and research products. Online retailers are continuing to shift advertising dollars away from traditional channels such as television, to spend more in digital ads. How Brazil Compares to Other Emerging Economies Although China tops the list of GDP among the BRIC countries at approximately 3.71 times higher than Brazil, the latter’s per capita GDP is on par. This is a positive indicator of consumer potential in Brazil and their growing purchasing power. BRIC GDP per capita Comparison Trend Line: Contingent Worker Forecast and Supply Report. © DCR. All Rights Reserved - 12
  • 13. Special Topic: Brazil e-commerce Market Watch Consumption in Brazil The Final Consumption Expenditure trend in Brazil is strongly indicative that e-commerce is a large source of consumer potential. This figure is the market value of all goods and services, including durable products (such as cars, washing machines, home computers), purchased by households. It excludes purchases of dwellings but includes imputed rent for owner-occupied dwellings, and also includes payments and fees to the government to obtain permits and licenses. The booming retail market in Brazil is also evident through the rise in retail trade. Overall, retail sales were up 7.3 percent in the first half of 2013, and up nearly 9 percent over the past 12 months, surpassing the percentage growth in Brazil’s GDP. Large areas of purchase include clothing and fashion accessories, and computer and technology goods. Currently, the fashion and accessory industry makes up over 12 percent of all online retail sales. What’s Hot in E-commerce? Worldwide e-commerce sales are expected to reach $1.4 trillion in 2013. Travel is the largest e-commerce category currently, led by airline ticket sales. In the United States, it is estimated that business and leisure travelers spent $85.7 billion online in 2012, representing nearly 58 percent of total online spending. This is expected to increase to $110.2 billion in 2016. Predictions for Brazil’s E-commerce Growth Using microeconomic data from Brazil, our analysts forecasted the size and growth of Brazil’s e-commerce market. Brazil’s e-commerce market is estimated to grow by more than 1 billion dollars in 2014, with an approximate growth rate of 10% from 2013. The GDP per capita will not fluctuate much in 2014 and 2015, and Internet business growth is a major deciding factor for the market. The federal government of Brazil is launching a national plan to provide cheap broadband Internet access, which could potentially substantially increase the size of the country’s online population. According to eMarketer, e-commerce in Brazil is projected to reach $29 billion by end of 2017. The upcoming events, the World Cup and Olympics, will upgrade the country’s transportation infrastructure, simplifying and expediting the logistics of shipping goods. Trend Line: Contingent Worker Forecast and Supply Report. © DCR. All Rights Reserved - 13
  • 14. Special Topic: Brazil e-commerce Market Watch Estimated Brazil E-commerce Sales Impact on Temporary Workers An increased amount of investiture in e-commerce would result in a growth of the supply of jobs in the country. During the holiday season in 2013, the retail sector experienced a boost resulting in a shortage of temp workers to meet the demand, with 18,200 temporary jobs unfulfilled. Retail and industrial sectors offer attractive opportunities for job seekers with competitive compensation, access to transport vouchers and other perks. The monthly average wage in Brazil for retail has increased by 11.8 percent in the past year. Retail trade accounts for 70 percent of the temporary job opportunities, where 16,800 positions have not been filled representing a shortfall of -15 percent. Traditionally, the industrial sector accounts for 30 percent of seasonal vacancies, of which 3 percent have not been filled, leaving 1,400 temporary jobs open for workers. Temp Vacancies in Brazil Trend Line: Contingent Worker Forecast and Supply Report. © DCR. All Rights Reserved - 14
  • 15. Methodology The DCR Wage Index is developed to assess the relative movements of temporary wage rates in the U.S. economy. The wage rates for temporary workers or contingent workforce are based on payments made by staffing firms to these workers based upon hours worked. Data collected from sources such as Bureau of Labor Standards (BLS) and other government sites as well as an internal pool of staffing companies and consultants, is aggregated and classified based on regions and skill categories, to arrive at an aggregate index. The baseline for the index is set at 100 for January 2007. Index value for a particular month indicates relative wages with the said baseline and is representative in terms of direction and scale of change. Five years of data has been included to observe seasonal patterns and distinguish seasonality from long-term wage movements. The data and the model has been further refined over last six months. DCR Wage Index combines the exhaustive data from BLS with practical and more recent developments and data from on-field consultants and clients, to provide timely near-term indications of trends and consistent long-term actionable and objective information. Source Data DCR Work Index uses multiple economic variables to ensure the robustness of its forecasts and cross-validation of trends. Key data sources and parameters of interest included and influencing the index are: Unemployment data Gross Domestic Product Prime rate of interest New and seasonal Job openings Non Form employment Job Opening All Export All Import Average Hourly Earnings of All Employees Total Private Aggregate consultant data on job market parameters Trend Line: Contingent Worker Forecast and Supply Report. © DCR. All Rights Reserved - 15
  • 16. Methodology References http://www.staffingindustry.com/Research-Publications/Daily-News/Best-jobs-for-2014-listed-by-CareerBuilder-28345 http://www.staffingindustry.com/Research-Publications/Daily-News/Bring-your-own-worker-and-other-trends-for-2014-28365 http://www.staffingindustry.com/site/Research-Publications/Publications/CWS-3.0/December-11-2013/US-Temp-Penetration-Rate-Matches-All-TimeHigh?cookies=disabled http://www.ibtimes.com/us-manufacturing-boom-ongoing-senators-urge-continued-support-needed-education-infrastructure https://www.manufacturing.net/news/2013/12/congress-report-shows-manufacturing-revitalization-urges-legislative-support http://www.startribune.com/business/236226521.html?page=2&c=y http://www.prweb.com/releases/2013/12/prweb11425575.htm http://www.staffingindustry.com/webinar-followup http://news.investors.com/economy/112213-680218-temporary-workers-rising-as-businesses-wary-of-hiring.htm http://www.bizjournals.com/phoenix/morning_call/2013/11/temporary-jobs-up-18-this-year.html http://www.shrm.org/hrdisciplines/technology/Articles/Pages/What-Workforce-Trends-Will-HR-See-in-2014.aspx http://www.business2community.com/finance/emerging-markets-brazil-ecommerce-statistics-challenges-0706969#!qgWUb http://www.pfsweb.com/blog/7-things-to-know-about-brazil-ecommerce/ http://www.lehighvalleylive.com/allentown/index.ssf/2013/11/allentown_looks_to_bring_manuf.html http://www.jsonline.com/business/harley-adds-100-temporary-workers-at-falls-plant-b99142475z1-231904741.html http://data.bls.gov/cgi-bin/surveymost?ce http://data.worldbank.org/country/ http://www.allpago.com/ecommerce+in+Brazil http://www.jsonline.com/blogs/business/231739491.htm http://www.forbes.com/sites/ricardogeromel/2012/03/23/brazils-e-commerce-is-booming-record-breaking-figures-in-2011-growth-of-26-earnings-of-11-bi/ http://www.ilo.org/wcmsp5/groups/public/---dgreports/---dcomm/---publ/documents/publication/wcms_202326.pdf http://www.e-commerce.org.br/stats.php http://research.stlouisfed.org/fred2/series/NAEXKP04BRQ652S http://www.iata.org/whatwedo/stb/Documents http://www.oecd-ilibrary.org/economics/economics-key-tables-from-oecd_2074384x http://americanstaffing.net/newsroom/newsreleases/dec_06_13.cfm http://www.staffingindustry.com/row/Research-Publications/Daily-News/Brazil-Around-18-200-temporary-seasonal-jobs-still-unfilled-28212 http://www.mbopartners.com/top-3-workforce-predictions-2014 http://www.forbes.com/sites/danschawbel/2013/10/24/the-top-10-workplace-trends-for-2014/2/ Trend Line: Contingent Worker Forecast and Supply Report. © DCR. All Rights Reserved - 16
  • 17. About DCR Workforce DCR Workforce is an award winning, best-in-class service provider for contingent workforce and services procurement management. Our proprietary SaaS platform (SMART TRACK) assists in providing customizable VMS and MSP Solutions to manage, procure and analyze your talent with complete transparency, real-time control, high performance and decision-enabling business intelligence. DCR Workforce serves global clientele including several Fortune 1000 companies. Customers realize greater efficiencies; spend control, improved workforce quality and 100% compliance with our services. For more information about DCR Workforce and its Forecasting Toolkit (Rate, Demand, Supply and Intelligence) including Best Practice Portal, visit dcrworkforce.com For more information call +1-888-DCR-4VMS or visit www.dcrworkforce.com Public Relations: Debra Bergevine 508-380-4039 7815 NW Beacon Square Blvd. #224 Boca Raton, FL 33487 debra.bergevine@dcrworkforce.com | sales@dcrworkforce.com | marketing@dcrworkforce.com www.dcrworkforce.com | blog.dcrworkforce.com facebook.com/DCRWorkforce linkedin.com/company/dcr-workforce twitter.com/DCRWorkforce Google+ © 2014 DCR Workforce, Inc. All Rights Reserved. DCR Workforce and Smart Track are Registered Trademarks. CCO — 082912 Trend Line: Contingent Worker Forecast and Supply Report. © DCR. All Rights Reserved - 17