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Express Personnel franchise owner Sean Sharp told the Redding Searchlight that in some sectors, such as manufacturing, "when the economy is soft, supply and demand is not as constant."
Therefore, these firms will turn to staffing agencies when they need to fill positions during peak need without taking on permanent staff.
Other businesses are wary about hiring new employees because they "don't want to be known as the company that has the layoffs," added Phil Feser, spokesman for Rush Personnel Services.
Meanwhile, smaller companies that do not have the means to operate a full-time human resources manager may pay staffing firms to take care of needs such as workers' compensation, employer liability and payroll processing.
Some 2.96 million people are employed by staffing companies each day, according to the American Staffing Association.
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