Aug 01, 2013

DCR National Temp Wage Index - August 2013

DCR National Temp Wage Index - August 2013

Employers in the United States added nearly 200,000 jobs in June of 2013, despite concerns over federal spending cuts, tax increases and the Eurozone recession. The number of part-time jobs also rose sharply, likely due to slack economic conditions. The number of workers who are involuntarily working part-time rose 322,000 to a total of 8.2 million in June, mainly because businesses are cutting their hours.

Restaurants and bars led the latest monthly payroll gains, adding a combined 52,000 jobs.  The leisure and hospitality industry, as a whole, accounted for 75,000 of the net job growth in June, about 2.5 times the growth seen last year. Retail also showed strong gains, adding 37,000 new jobs. Business and professional services grew by 52,000 (10,000 of which were temporary help jobs).

The increase in temp jobs is not limited to only those sectors that typically employ part-time workers. Other sectors with strong job growth, such as professional and business services, have also seen a rise in part-time workers as employers aim to keep payroll costs down.

The unemployment rate remained steady at 7.6%. The number of temporary workers increased by 9,500.

Utilization of Temp Employment in Europe

According to a study by Eurociett, the European Confederation of Private Employment Agencies, temporary employment plays an important role in entry and advancement in the job market. The study found that in Belgium, 48% of workers used temporary work to improve their chance of finding permanent employment. And 80% of temporary workers in France believed that the training they received in temp positions was instrumental in finding their current job. In Germany in 2011, 60% of people were unemployed or had no work experience prior to starting a temporary engagement.

"As you have more and more costs associated with full-time workers in terms of healthcare or other costs, employers look for alternative ways to reduce costs…One way is on-demand and part-time work." ~Michael Bernick, former California Employment Development Department Director