These are interesting times for the global workforce as indicated by the following report published by Barron’s Nancy Miller an American publication.
“TEMPORARY HIRING has been on fire, but it may no longer be as strong a bullish signal for broad employment as it once was.”To say that's overtly bullish underestimates the depth to which this chronic unemployment dilemma has gotten," says money manager Greg Weldon, CEO, Weldon Financial. Employers are uncertain about too much, to create new jobs.
Over the past four months, temp hiring has been running at a record, gaining 19.5% year-over-year. And even as the jobless rate stays stubbornly high at 9.6%, the American Staffing Association has reported that its index of temporary and contract workers reclaimed 100 in September for the first time in more than two years; it had bottomed at 69 in December 2009. Gluskin Sheff chief economist David Rosenberg says the reliance on temps isn’t a great forward looking barometer of rising labor demand ahead but rather a deliberate just-in-time hiring strategy that helps contain costs with no commitment to the new recruits. In this period, with temp hiring on fire, employers have slashed one million full time positions from the job rolls. The Duke University/CFO Magazine Global Business Outlook Survey confirms the dismal outlook, with execs saying they plan to boost temporary and contract hiring to 25% from 17% prior to the recession.
Are we witnessing a structural change in the American work force? Upjohn Institute senior economist Susan Houseman says that’s possible, although it’s too early to call definitively. The worry: It could be a replay of the 2001 recession when manufacturer’s permanently killed jobs in favor of temps.