Tags: Falling | Demand | Temp | Workers | Job | Market

Falling Demand for Temp Workers Ominous For Job Market

Monday, 11 Jul 2011 09:06 AM

Everyone knows it's tough to find a job out there these days, but even demand for temporary jobs is falling.

The total number of temporary employees placed by staffing agencies dipped by 12,000 in June and is down 19,000 the past three months, the Bureau of Labor Statistics reported Friday, USA Today reports.

That's really bad news for the overall jobs market, since employers hire temporary workers first to meet increased demand and then hire them full time when they feel business conditions warrant.

"It's not a good sign" for the next two months, says Paul Ashworth of Capital Economics.

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(Getty Images photo)
U.S. payrolls grew by 18,000 in June, far less than expected, while the unemployment rate crept up to 9.2 percent from 9.1 percent in May and 9.0 percent in April.

Plus workweek hours are falling, which means companies will need even less temporary workers to help alleviate those with hectic schedules.

Roy Krause, CEO of Spherion, a staffing agency, says temporary placements for many white-collar jobs remain strong.

But those for lower-skilled light industrial, clerical and certain call-center jobs — which accounted for most of last year's growth — have slowed.

"They tend to be more sensitive to economic conditions," Krause tells the newspaper.

Analysts say continued weak unemployment is plaguing economic recovery.

"This is a very fragile state for the U.S. labor market," says John Herrmann, a senior fixed-income strategist at State Street Global Markets in Boston, according to Bloomberg.

"It suggests that the overall recovery remains somewhat tenuous."

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Everyone knows it's tough to find a job out there these days, but even demand for temporary jobs is falling. The total number of temporary employees placed by staffing agencies dipped by 12,000 in June and is down 19,000 the past three months, the Bureau of Labor...
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