Contingent Bill Rates Remain Steady, Despite Continued Temp Labor Market Growth, According to IQNavigator's IQNdex Report

Report Also Examines Impact of Affordable Care Act Employer Mandate on Contingent Hiring

Jul 25, 2013, 08:00 ET from IQNavigator

DENVER, July 25, 2013 /PRNewswire/ -- During the second quarter of 2013, contingent labor bill rates remained nearly unchanged despite a large increase in newly created contingent labor jobs in the US, according to the most recent IQNdex report from IQNavigator. Temporary Staffing Agency hiring was once again a notable engine of job creation during Q2 2013, a source of almost 54,000 net new jobs. This represents over 9 percent of all non-farm jobs created in the US during the quarter. Despite the addition of this large number of new jobs, the IQNdex remained steady with the prior quarter, indicating that the strong demand for contingent workers was offset by a steady supply of labor for those roles. While bill rates have risen for certain high skill roles, such as in Tech-IT, there has been little upward pressure on overall contingent labor bill rates in the second quarter of 2013.


The IQNdex report provides insights into the segment of the US labor market comprised of non-employee workers such as freelancers, contract workers, temps, staffing agency employees and independent professionals. According to the report, the low labor force participation rates in the second quarter - 63.3 percent in April - are the lowest since May 1979. Continued high unemployment and a low participation rate suggest an abundant supply of potential job-seekers, a likely contributing factor to the absence of upward pressure on contingent labor bill rates. During Q2 2013, the Master IQNdex rose 0.1 percentage point, slowing from 0.6 in Q1.

The Master IQNdex is based on analysis of millions of data points across all geographic areas of the US and across four major job categories. For further analysis of temp labor bill rate trends, including job sector and geographic insights, along with more analysis of Patient Protection and Affordable Care Act (PPACA) impact, visit for the most recent IQNdex report.

Key insights in the Q2 2013 IQNdex report include the following:

  • In 2015, the employer mandate of the Patient Protection and Affordable Care Act (PPACA) will increase the cost of labor by requiring large firms (over 50 employees) to either provide health benefits for both direct hire employees and workers obtained through staffing firms or pay an excise tax. This will create an unintended incentive for employers to meet their labor needs with more part-time workers who get fewer hours, or to cover peak labor demand with temporary workers. The Q2 2013 IQNdex report explores various possible scenarios for how this will impact contingent hiring, including potential responses and outcomes of the employer mandate.
  • Bill rates for Light Industrial roles have risen each month since December 2012, climbing almost 4 percent across that period. All geographic regions are up in 2013, but the West leads the way with a 7.5 percent increase.
  • The regional view of US bill rate trends revealed minimal movement during Q2 2013. The greatest change was in the Northeast region where Tech-IT and Professional-Managerial job sectors were responsible for the 0.7 percent bill rate increase.

"The employer mandate of the Affordable Care Act is scheduled to take effect on January 1, 2015. However, the payroll profile and individual work histories recorded in the prior year (2014) will determine the specific impact of 'Obamacare' going forward. This means that the time is now for companies to start making plans and securing the tools and expertise required to optimize performance under the new law," said Gary Pollard, VP, Information Products at IQNavigator. "Contingent labor continues to grow in importance as part of the workforce solution of US business. Obamacare highlights the value of using contingent labor to meet many needs, but it also adds a layer of complexity."

About IQNavigator

IQNavigator is the proven leader in services procurement solutions, helping global enterprises better manage all types of procured services and their non-employee workforces around the world. With over 5.2 million users from over 125 countries worldwide accessing the IQNavigator platform, IQN is localized in 40 countries and 14 languages. As the only Vendor Management System (VMS) with true mobile capabilities, IQNavigator consistently ranks as the best SOW functionality in independent surveys. IQNavigator's cloud-based VMS software processes tens of billions of dollars in yearly services spend, enabling clients to intelligently manage and optimize the cost-effectiveness, compliance, visibility and efficiency of complex services procurement and contingent workforce programs. For more information about IQNavigator and how its industry-leading offerings are helping many of the world's most respected companies, visit

SOURCE IQNavigator