Although future job growth in the employment services industry expected to continue at a faster-than-average pace, this growth will represent a slowdown from the very rapid growth of the 1990s. Most temporary jobs in this industry require only graduation from high school, while some permanent jobs may require a bachelor’s or higher degree. Temporary jobs provide an entry into the workforce, supplemental income, and a bridge to full-time employment for many workers.
The employment services industry has three distinct segments. Employment placement agencies list employment vacancies and place permanent employees. Temporary help services, also referred to as temporary staffing agencies, provide employees to other organizations, on a contract basis and for a limited period, to supplement the workforce of the client.
[ Source - Career Guide to Industries ]
In contrast to the smaller employment placement agencies, temporary help agencies typically employ many more workers. Temporary help services firms provide temporary employees to other businesses to support or supplement their workforce in special situations, such as employee absences, temporary skill shortages, and varying seasonal workloads. Temporary workers are employed and paid by the temporary help services firm but are contracted out to a client for either a prearranged fee or an agreed hourly wage. Some companies choose to use temporary workers full time on an ongoing basis, rather than employ permanent staff, who typically would receive greater salaries and benefits. As a result, the overwhelming majority of workers in the temporary help services segment of the employment services industry are temporary workers; relatively few are permanent staff.
Professional employer organizations specialize in performing a wide range of human resource and personnel management duties for their client businesses, including payroll processing, accounting, benefits administration, recruiting, and labor relations. Employee leasing establishments, which are a type of professional employer organization, typically acquire and lease back some or all of the employees of their clients and serve as the employer of the leased employees for payroll, benefits, and related purposes.
[ Excerpted from Bureau of Labor Statistics, U.S. Department of Labor, Career Guide to Industries, 2008-09 Edition - Employment Services ]