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)
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