One of the labor market’s early-warning signs may be flashing trouble.
Hiring by staffing agencies has ground to a halt so far in 2016, a worrisome sign because the category fell off before a broader job-market slowdown ahead of the past two recessions. Many economists look at the sector as a leading indicator because cautious firms tend to first hire temps when an expansion begins and dismiss those nonpermanent workers when they sense the economy is faltering.
***"It’s the first sector that really begins to lose jobs," said Donald Grimes, a labor economist at the University of Michigan. "If you start seeing those numbers go negative, you’ve got a real problem."
Source: The Wall St Journal
Wednesday, May 25, 2016
Slowdown In Temporary Worker Hiring Generating Fears Of Another Recession
Posted By Milton Recht
From The Wall Street Journal, "Temp-Worker Freeze Bodes Ill for Economy: Flat staffing suggests broader job-market slowdown may be ahead" by Eric Morath:
Posted 5/25/2016 10:04:00 AM