Temp to permanent…..that is the way it goes after recessions. If the prior is doing well, eventually the later does also.
U.S. staffing companies reported strong growth in the number of temporary workers employed in the second quarter of this year, compared with the same period last year, according to survey data released by the American Staffing Association.
America’s staffing companies employed an average of 2.4 million temporary and contract workers per day from April through June. That’s an increase of 23.3% from the same quarter last year and an improvement of 18.0% over staffing employment reported for first quarter of 2010.
“Even as the pace of economic growth slowed, staffing firms added 360,000 new jobs during the second quarter,” says ASA president and chief executive officer Richard Wahlquist. “This is an encouraging sign that there is still some juice left in this recovery and that businesses across a wide spectrum of sectors continue to experience a slow but sustained uptick in demand for their products and services.”
Staffing sales in the second quarter of this year totaled $16.9 billion, according to ASA survey results—a 32.8% increase over the same period last year. This is the largest year-to-year percentage increase recorded since ASA began tracking industry sales on a quarterly basis in 1992.
This backs the view of both our Compass Diversified (CODI) holding who’s StaffMark subsidiary is reporting breakout results and Challenger, Gray & Christmas who are optimistic on jobs.
Then we have this from James Altucher:(HT Reader Scott)
The bad news seems to be that unemployment is just dismal. But here are a couple of things to keep in mind. Check out this graphic: “jobless recovery”. The phrase “jobless recovery” occurs in news reports after every single recession since 1970. Its not unusual for job growth to be slow after a downturn. Also, the Pragmatic Capitalist offers some perspective on the high unemployment rate by comparing our recovery with prior recessions. But, we have some good (great) datapoints: the average workweek for non-government jobs increased last month, as did hourly pay. Multiplying hourly pay by hours worked shows that incomes are up 6.2% over a year ago. The average work week for nongovernment jobs is now at pre-recession levels. Any further increase in productivity will find its way into growth in employment. In fact, civilian employment (nongovernment) has increased at a rate of 200,000 jobs per month. Everyone needs to relax about employment.
It also plays into my post from a few days ago that the “weekly jobless claims” actually fell last week regardless of the rise that was reported.
Things are not anywhere near as bad as some would like you to believe…