Reuters reported last week that temporary labor suppliers are seeing an increasing number of temporary and project based contingent workers hired as internal, direct hire employees.

In fact, larger staffing firms estimate that around 40% of the contingent workers they place on assignment eventually convert to direct hire employees. However, this suggests that the remaining 60% of these workers - filling flexible positions - are likely to retain that status for the foreseeable future.

A recent survey commissioned by Yoh found that 85% of respondents said that the size of their contingent workforce had either stayed the same or increased since September 2008. The respondents also stated that they expect their usage of contingent workers to either stay the same or increase as the economy rebounds.

The temporary staffing industry sector added 45,000 jobs in February, while temp job gains in January and December were stronger than initially estimated. The contingent workforce gains represented the eighth straight monthly increase in a row – which is great news for both the staffing industry and the economy as a whole.

In other news this week, the Wall Street Journal reported that CFOs are placing a higher emphasis on contingent workers with 57% of finance departments planning to add staff over the next six months.

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