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Temporary Jobs Becoming A Permanent Fixture In US

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“I needed a job,” she says.

The store managers have said some temps will be kept on permanently, Carr says, depending on their performance.

Carr isn’t counting on it.

The trend toward contract workers was intensified by the depth of the recession and the tepid pace of the recovery. A heavy investment in long-term employment isn’t a cost all companies want to bear anymore.

“There’s much more appreciation of the importance of having flexibility in the workforce,” says Barry Asin of Staffing Industry Analysts, a consulting firm.

Susan Houseman, an economist at the Upjohn Institute of Employment Research, says companies want to avoid having too many employees during a downturn, just as manufacturers want to avoid having too much inventory if demand slows.

“You have your just-in-time workforce,” Houseman says. “You only pay them when you need them.”

This marks a shift from what economists used to call “labor hoarding”: Companies typically retained most of their staff throughout recessions, hoping to ride out the downturn.

“We clearly don’t have that anymore,” says Sylvia Allegretto, an economist at the University of California, Berkeley.

The result is that temps and contract workers have become fixtures at large companies. Business executives say they help their companies stay competitive. They also argue that temp work can provide valuable experience.

“It opens more doors for people to enter the labor market,” says Jeff Joerres, CEO of ManpowerGroup, a workplace staffing firm.

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Posted by FanSite on Aug 1st, 2013 and filed under News. You can follow any responses to this entry through the RSS 2.0. You can leave a response by filling following comment form or trackback to this entry from your site

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