Sunday, August 26, 2007

Temp labor demand down: WSJ

" Add another item to the economic worry list: Employers are shedding temporary workers.

Temporary employment, long a buffer that gives companies flexibility, has fallen each of the past six months, and in July was down nearly 2% from the start of the year, according to the Bureau of Labor Statistics. U.S. revenue at Manpower Inc., the world's second-largest staffing firm after Adecco Group, dropped almost 9% in the second quarter, as demand fell.

In case it doesn't fit on one line, I've split it into three:

but the most interesting bit:
" The Background: Use of temps is often viewed as a leading indicator for the overall job market, as companies cut temps before full-time workers on their payrolls.

If you have an online subscription to the WSJ its worth a read. It goes into how this is a slow drop in temp demand and is not a severe drop as happened in the last recessions.

But don't miss two of the last three paragraphs. I'll only paste one to keep within "fair use" guidelines:

Because the temp and overall job markets haven't tracked closely in recent months, the weakness in temp hiring could be a false indicator. "Nobody has ever seen this type of a pause in temp employment growth," Mr. Camden said. "This is just an unusual array of numbers...In general when you've had a long flat period, it's followed either by a sharp increase or a sharp decrease."

To me it implies we are about at the sharp decrease. I honestly thought we would ease our way into this recession. Instead, we seem bound and determined to hit the wall as fast as we can.

Got popcorn?

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