For good reason, unemployment numbers are one of the go-to metrics for economists to judge the relative success of an economy. The more people that are actively working, the more capital is being generated and thus reintroduced into the economy. In addition, low employment numbers often portend higher reliance on public assistance, a financial onus which affects the economy at large.
There may even still be effects that aren't captured by that algebra. According to a recent Gallup poll, depression rates are higher among those who have been out of work for more than six months. While this does not prove causation, it does suggest a correlation between mental wellness and employment that deserves a thorough explanation.
In addition, these effects may not be limited to a single person. Take, for example, the case of a woman being laid off from her long term job and facing difficulty finding a new one. Not only can this have a negative impact on her own mental health and long-term outlook, it could also affect those of her husband and children.
In The Cap Times, educator Anna Gassman-Pines describes some of the potential issues.
"For starters, the impact of widespread job loss hits hard in our schools. Research has shown that children are more likely to be held back in school if one of their parents has lost a job. My colleagues and I have studied job loss and student test scores in all 50 states and found that the more people in a community who lose jobs, the lower the scores of all children in that community on end-of-grade achievement tests. So even when their parents are still working, children can score lower because of increased stress — the type of stress that drove my cousin's children to ask about his job security," explains Gassman-Pines.
Following this logic, it stands to reason that job placement is not just important for candidates and the companies looking to hire them, but also for communities at large. For organizations that don't have the budget to make a long-term hire, but would still benefit from additional hands on deck, contingency staffing stands out as a viable solution: they get qualified people to work on particular projects, and at the same time contribute to building a stronger economy.
In the end, the more people that are working, the better off we are.