"Head hunter"employment agencies tend to focus on finding permanent positions for executives and professionals, charging a fee in exchange for the service. More common are employment agencies that gain income by placing employees with client companies, then sharing a percentage of the employee's pay. While these agencies sometimes place people in permanent positions, it is more likely that positions obtained will be temporary, or may be positions that lead to a permanent position.These employment agencies are commonly referred to as temporary agencies. Temporary agencies can also serve as a gauge of the overall economy. When a down turn occurs in the economy, temporary agencies are often the first to experience adverse effects, as companies usually cut temporary positions first, before laying off permanent employees. Conversely, when the economy begins to recover, companies often hire temporary employees before committing to hiring people permanently.Most reputable agencies require candidates to undergo a series of tests before recruiting them, accessing skills in such areas as reading, writing, mathematics, machinery and accounting, as well as a number of software programs. Candidates are then interviewed by an employment agency recruiter.When the economy is robust, temporary employees can expect to be placed in temporary assignments regularly. Agencies will call employees, describe an assignment, then often start them in the position the following day. Employees are free to refuse assignments. In a flat economy, however, the situation is reversed. Temporary agencies find themselves with more employees than they can place. Agencies become more selective, often requiring employees to interview for any available positions. Employees might contact the agency frequently without gaining employment.Since the industry depends on acquiring contracts with a number of businesses, companies and corporations, employment agencies invest in a substantial amount of research regarding job trends and statistics. While registering with an employment agency might not provide immediate employment, they can be a good resource of employment information. They can also give job seekers experience in the application process, help to assess their skills and provide feedback that may help them find employment, whether through the agency or on their own.