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Rise in temp jobs seen as indicator of growth in private sector job openings, EmploymentCrossing finds 130,000 jobs.

September 14, 2010   |  PDF version  PDF version

Pasadena, CA — Temporary jobs accounted for 17,000 new jobs in August. The temp sector hiring usually picks up before the economy starts creating more fulltime regular jobs.

Overall, private and public sector hired a total of 4.2 million people and let go 4.4 million workers. This is according to the Labor Department’s latest report known as the Job Openings and Labor Turnover Survey. One of the reasons why 14.6 million people are still unemployed is that the employers may not be getting candidates with the right skills.

Another is that hiring fulltime, regular staff means companies have to pay them benefits such as health insurance. Compared to this, temp workers receive little to no benefits and can be let go quite easily. The temp sector today employs 2.1 million people and is increasingly used by not just blue-collar workers but by laid off professionals such as managers, nurses, and accountants.

Reacting to the latest Labor Report, A. Harrison Barnes says that this just confirms his belief that an increasing number of jobs are going to be in the temp sector. ''Employers are trying to cut costs and the best way to do it is to hire people as temps when needed. But eventually the high performing employees end up getting permanent jobs when the economy rebounds.'' Barnes is CEO of EmploymentCrossing, a job aggregator website which has been able to compile a list of almost 130,000 jobs.

Roger Croft
Editorial Coordinator
Employment Research Institute

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