(Newswire.net — February 1, 2016) — Temporary Staffing Jobs See Significant Month to Month Growth. BLS has released preliminary numbers on the number of temporary workers employed in the US during December. After a 12,000 dip in jobs when moving from October to November, the temporary employment sector saw a surge of 34,400 jobs added in December. Overall, nonfarm employment increased by 292,000 last month. The unseasonably warm weather has been cited as a possible reason for the growth in jobs.
The good news comes at a time where economic indicators have been signaling some weakness. The unemployment rate has stagnated the last few months remaining at 5% and the stock market has been the subject of incredible volatility and steep declines. Abroad China’s slowing growth has scared global investors and sparked worry of a global recession.
Speculators suspect the increase in temporary job growth is in part due to companies wanting to hire additional workers, but don’t necessarily have the OK to hire just yet. So instead of adding full-time employees they opt to hire temporary workers. This suggests that companies are more productive and need a larger workforce, but that their uneasiness regarding the U.S. economy is holding them back from making permanent hires.
Although the resilience the labor market is experiencing could raise rates in March, many economists think that they will remain steady. The component that would greatly affect these rates is the development of inflation. With oil prices being as low as they are, people cannot depend on latest market improvements to guarantee a rate increase.
Last month, the United States central bank raised overnight rates by a quarter of a percent, increasing the rate between .25 and .50 percent. This is the first time that this move was made in ten years. Despite the drop in wage growth in December, economists believe that it was related to some twist in the calendar. Considering the drop in December, the year-to-year rates went up from 2.3 percent to 2.5 percent.
Besides the wage growth, the labor force participation rate is a component that people are watching carefully. This is based off the amount of working-age people who are actively working or seeking employment. While there was a slight increase this past December with a rate of 62.6 percent, but the rate is still low compared to past years.
The low amount of participation could greatly affect job growth. The employment-population ratio increased from 59.4 percent to 59.5 percent, which is the best it has been since 2009, but if participation continues to underperform than it will undoubtedly stifle the total number of jobs that are being created.
About Tab Staffing
TAB Staffing is a company focused, people minded staffing organization putting integrity before profitability. The company is directed by two managing partners with over 40 years of experience in recruiting and staffing in multiple markets and verticals. On-site programs, employer of record services, automated time and attendance systems, are only part of the services that Tab Staffing offers both locally in the New York Tri-State Area and nationally.