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By Catholic Online (NEWS CONSORTIUM)

4/22/2014 (1 year ago)

Catholic Online (www.catholic.org)

Businesses turn to temp labor to cut costs

With full time employment remaining a scarcity since the 2008 recession, more and more Americans are turning away from the employment model of their parents, instead seeking part time employment.

Demand for temporary workers is rapidly increasing in the US job market.

Demand for temporary workers is rapidly increasing in the US job market.

Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

4/22/2014 (1 year ago)

Published in U.S.

Keywords: US, finance, business


LOS ANGELES, CA (Catholic Online) - The booming demand for temporary workers has been seen as salvation by those left unemployed, but many fear that the lack of long term viability or room for advancement will leave them in a dead-end job.

Numerous workers have managed to make their careers out of filling temporary positions, and companies have been very receptive to a labor force that can be switched on and off at a whim. However the lack of vacation, sick days, or benefits can seriously harm employees who eventually seek to have a full time career or healthy retirement plan.

Its usual to see the demand for temporary employment increase as an economy recovers, but senior economist at Upjohn Institute for Employment Research, Susan Houseman, says that current demand is higher than expected.

"Right now we're seeing something interesting. We've seen it surpass its previous highs, so it looks like there could be a structural shift going on too. There's a reason to believe we might see some increase in the use of temporary help in general."

The temp industry added 28,500 jobs in March, and about 2.8 million workers are currently employed in temporary or contract positions, says the Bureau of Labor Statistics. A little more than 2 percent of the workforce, a high which was last reached in April of 2000.

Businesses see a great benefit in hiring temp workers. By not paying benefits it's cheaper, avoiding workers' comp, sick leave, and health insurance saves a great deal. Manufacturing organizations are one group that is seeing the benefit, currently 40 percent of the demand for temps is from them.

The loss of power in workers' rights organization, and the rise of third party hiring agencies have been part of the cause of this alarming trend which threatens to slam the already struggling American middle class.

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