Wednesday, May 25, 2016

Slowdown In Temporary Worker Hiring Generating Fears Of Another Recession

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:
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."

Temp Worker Hiring Chart
Source: The Wall St Journal

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