Breakingviews - Fewer US temp jobs may flag longer lasting concern - Reuters

WASHINGTON, Sept 1 (Reuters Breakingviews) - A steady drop in the temporary worker employment is a concerning blight in an otherwise steady U.S. labor market. Despite adding another 187,000 jobs in August, short-term positions such as event staff declined for a seventh consecutive month, to about 2.9 million, according to data released on Friday by the Bureau of Labor Statistics. The trend has been an ominous sign before.

Companies that recruit and place temps tend to cut payrolls when the first signs of an economic slowdown emerge. Employment in the sector peaked 11 months before the 2000 and 2007 recessions, per BLS data. The crest, at 3.2 million, occurred 17 months ago, in March 2022, signaling that weakness could be ahead.

Businesses are also using fewer temps. The penetration rate, which measures the share of employed workers provided by staffing firms, fell to 1.9% in August, according to an industry trade group, close to the lows just before the two previous downturns. Although the jobless rate reached 3.8% in August, its highest since early 2022, there are few other glaring employment concerns. If history is any guide, however, the situation may only be temporary. (By Ben Winck)

Reuters Graphics

Follow @Breakingviews on X

Capital Calls – More concise insights on global finance:

India's twin growth engines face turbulent weather read more

Microsoft swerves to avoid EU speeding ticket read more

Pernod Ricard shares face a lengthy dry spell read more

Adani fault lines raise bar for India’s regulator read more

3M’s $6 bln earplugs settlement is a little sticky read more

Editing by Jeffrey Goldfarb and Sharon Lam

Our Standards: The Thomson Reuters Trust Principles.

Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Acquire Licensing Rights, opens new tab

Adblock test (Why?)

"lasting" - Google News
September 01, 2023 at 10:58PM
https://ift.tt/t6y4MlA

Breakingviews - Fewer US temp jobs may flag longer lasting concern - Reuters
"lasting" - Google News
https://ift.tt/ZoaNWw9
Shoes Man Tutorial
Pos News Update
Meme Update
Korean Entertainment News
Japan News Update

Bagikan Berita Ini