A recent Reuters article by Kristina Cooke shares some good news:
“The pace of temporary job creation after the most recent recession – an average of about 25,000 per month – has been faster than the past two, potentially a good sign for a labor market struggling with a jobless rate of 9 percent.”
This Reuters graphic of BLS data illustrates why experts look to the staffing industry for signs of recovery:
If you compare temporary employment to overall employment, you can see how the number of temporary workers declines faster heading into a recession and rises more quickly in a recovery.
In fact, research from the American Staffing Association indicates that temporary help employment is a strong coincident economic indicator when the economy is emerging from a recession. Overall, temporary hiring rose steadily through 2010, with U.S. employers adding more than 300,000 temporary jobs (about a quarter of the 1.17 million in overall job growth last year). Translation? The sustained upturn in temporary staffing is good news for the economy.
But Cooke goes on to temper this enthusiasm, noting that a faster pace of temporary hiring hasn’t yet translated into significant full-time job creation – a critical piece of the recovery puzzle. Experts such as Peter Capelli, professor at the University of Pennsylvania’s Wharton School, say that because employers are now using temporary assignments to try out potential employees on the job, the increase in temporary hiring could be masking direct hiring.
Wood Personnel Services – Driving Middle Tennessee’s Recovery
As businesses throughout Middle Tennessee begin to staff-up again, Wood Personnel is driving the recovery. We deliver customized staffing solutions to help companies like yours achieve sustained business success in a volatile economy. What can we do for you? Contact Wood Personnel today.