A Key Reason the Unemployment Number was Bogus

The recent Bureau of Labor Statistics unemployment report showed fewer than expected job losses. However, a key driver of the lower number were 52,000 new temporary workers, the most in five years. The BLS statistics also showed that the US may be transitioning into a workforce where every one in four workers holds a temporary position. 

According to USA Today:

“Gary Mathiason, vice chairman of Littler, the No. 1 employment law firm, predicts half the jobs created in the recovery will be filled by contractors, consultants and other temps.

“Fifteen years ago, most temporary slots were for office work, but more than half are now filled by professionals such as engineers and physicians, Asin says. Business Talent Group, which places executives, saw its second-quarter business rise 70%.”

The article indicates that temporary jobs are not only replacing regular work, but they are also becoming more commonplace in higher-level positions. More details are available from USA Today in its coverage of how a quarter of the workforce could become temps as contract work grows.

The Daily Reckoning