Tech-enabled staffing startup LaborWorx has raised its first round of funding as it looks to grow its staff and client base, according to a news release.
The company, which helps construction and manufacturing companies connect with on-demand workers, raised $4.2 million. The company did not disclose where the private investment came from.
The raise comes as numbers indicate demand for temp workers and on-demand staffing has shrunk. Employers cut 110,800 temporary workers in the last five months of 2022, the Wall Street Journal reported. December was the largest monthly drop since early 2021. About 35,000 temp workers were cut.
However, LaborWorx is still confident in its growth in a turbulent economic climate, with the belief that its software can come in handy as some businesses halt hiring and lay off full-time workers.
“Their production forecasts aren’t changing, and they’re being forced to get creative with how they staff their sites to achieve a similar result with less,” said a spokesperson in an email.
Following the raise, the company will hire account managers to serve construction and manufacturing customers, more skilled trade recruiters to expand its worker database and a new marketing team, said the spokesperson.
It will also increase advertisements, attend industry-specific trade shows, sponsor local trade associations and build a partner network.
This summer, the company also has plans to launch a mobile application. That will be a tool that skilled workers can use to find jobs related to their skills. It also plans to incorporate more features like daily pay, a resume generator and skills training.
Founded in 2022, LaborWorx has 15 full-time employees with plans to add more than 20 in the coming months. It has over 10,000 workers in its marketplace and plans to “increase that number drastically in the coming years”.
It is led by CEO Aaron Phillips. Prior to LaborWorx, Phillips was CEO of Fairburn, Georgia-based AMCON Industrial, which provides services including engineering design, process piping, sheet metal, millwright, rigging and industrial maintenance.
