ASA Staffing Index Level Above Last Year by 26%
MP: The ASA index level of 91 for temporary and contract employment activity in the fourth week of June is the second week in a row at that level, which is the highest reading in 86 weeks ( since late October 2008, see chart above). The 26% gain in the index marks the tenth consecutive week of an annual gain above 20% compared to the same week last year, and is also the nineteenth straight week of double-digit gains for temporary employment (starting in mid-February).
The ongoing increases in temporary hiring, measured by both the ASA Staffing Index and the BLS temporary employment levels (nine straight monthly increases that have added almost 400,000 jobs since last September), provides evidence that the demand for temporary and contract employment continues to strengthen, which should hopefully translate into more broad-based, permanent job creation in the second half of this year.
3 Comments:
Barry Ritholtz has an interesting piece on temporary staffing today.
the temp jobs indicator seems to be failing this time:
"Temp jobs are now up 19.6% year over year, a record for the series going back to 1990 (when BLS began tracking it). Private sector jobs less temp jobs are still down 0.7% year over year. Historically — and I’ll admit going back only to 1990 isn’t a particularly robust data set — when temp jobs are up over 10% year over year, private sector jobs (less temp jobs) are running in the range, on average, of +2.4% YoY, not -0.7%. In the 20 year history of the series, never has the year over year gain been 10% or more while the private sector (ex-temp) has been negative. This is yet another variation on the theme of whether this may be As Good As It Gets."
The Big Picture
Companies need the help but are not yet comfortable enough with the economic climate (recovery ?) to commit to full-time employment. The increase in the ASA Staffing Index is expected.
Companies need the help but are not yet comfortable enough with the economic climate
...may require some prodding to put up (full-time, no adjustment in requirements) or shut up(stop taking their objections out on the private sector when they really hate the government)
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