---
title: Staffing producer price index rises
description: The producer price index for employment services recently posted its highest year-over-year increase since December 2010.
---

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June 17, 2013

# Staffing producer price index rises

Written by: [Innovative Employee Solutions](https://blog.innovativeemployeesolutions.com/ies-blog-nb-24/author/innovativeemployeesolutions)

Producer price indexes, reported by the U.S. Bureau of Labor Statistics, track the change in prices received by service producers over time. The producer price index for employment services recently posted its [highest year-over-year increase](http://www.staffingindustry.com/Research-Publications/Daily-News/Staffing-price-index-jumps-over-year-26139) since December 2010. This increase reflects the growing demand for the services of employment agencies.

As the economy recovers, [temporary workers](http://innovativeemployeesolutions.com/wp/temporary-workers/) are often the first ones hired. More companies plan to hire now than in years past, and often turn to employment services for [contract workers](http://innovativeemployeesolutions.com/wp/contract-workers/) in order to avoid hiring full-time workers, who they may not be sure they can afford to retain or insure under the coming ACA. This increasing demand may be behind the producer price index growth.

The high price index indicates that demand is high, which in turn reveals that employment services are performing their jobs well. Higher prices are generally paid for work of higher quality, especially when it is a type of work in high demand. Now is the time to pursue hiring temporary workers, as employee services are at the top of their efficacy.

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