May 26, 2011 (Bloomberg) According to today’s article, Temp labor in the IT and Medical fields have risen as estimated 6.3 percent since this time last year. It’s a remarkable rate, but even more remarkable is the affect it will have on the rest of the labor market. Although wage increases for permanent employees typically lag behind increases in temporary workers, the increase in temp pay usually indicates a forthcoming in wage increases for permanent employees.
This is surprising news considering unemployment levels are still high, and some experts explain the increases are at this point only for “skilled” labor. Certain trades, such as IT, and the Medical field, are in higher demand right now, and those are the areas labor is increasing. However, there is typically a trickledown effect for most markets.
As a small business owner, you have to figure out whether the increases are going to affect you, or not. If you run a computer repair shop and business demand increases at certain times of the year, you may be hiring temp workers, and this will directly affect you. But it’s not that easy for the rest of us. Maybe it’s time to reconsider your labor budget and stay ahead of the ball. At this point it truly is hit and miss, but you know preparation is key to success.
One way to prepare for the increase in labor costs is to consider a Merchant Cash Advance. It’s not another loan, but an advance on your credit card receivables. Unlike bank loans, Merchant Cash Advances are easy to obtain, do not stipulate how the money is spent, which leaves you in control of your business, and best yet, the repayment is suited to meet the needs of your business. If you find your business is a little cash strapped, call Strategic Nationwide Funding for assistance at 1-866-972-8885, or visit our website at www.SNFfunding.com.
