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Temp jobs soar: Good sign? Or bad omen?

Jim Giuliano
by Jim Giuliano
January 7, 2010
1 minute read
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If you’re looking to hire temps, you may find stiff competition good workers. The question is: Does the rise in temps signal a rise in the economy — and employment?
The U.S. Bureau of Labor Statistics reported that temp hiring increased last month by 52,000. That was the largest increase in any job category — even larger than the hires in health care and government, which had been doing well through the recession.
In past recessions, a rise in temp hiring preceded a rise in hiring of full-time regulars. This one’s a little different, however. In the past, temp hiring rose for two or three months, followed by an increase in hiring of full-timers. This time, temp hiring has risen for four consecutive months, and we’re still waiting for full-time numbers to go up.
Most economists see the figures as a sign that companies are still cautious and still clearing out old inventory.

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