What does a labor service company do?

A labor service company refers to an enterprise that recruits some workers who have the ability to work and meet the market requirements according to the demand of the labor market, and then sublets or dispatches these workers to other employers to obtain the labor price difference.

With the deepening and development of China's reform and opening up, labor service companies are a new thing. In the past, under the planned economy system, the employment of enterprises and units was strictly controlled by the labor department, and all services had to be approved by the labor department. Otherwise, the employer can't get the total wages approved by the labor department and can't pay the workers' wages.

With the continuous advancement of China's reform and opening up and the deepening of enterprise ownership reform, a large number of surplus labor, that is, a large number of laid-off and unemployed people, and rural surplus labor continue to flock to cities, forming a broad labor market.

References:

Baidu encyclopedia-labor dispatching