Employers Are Shifting to Temps
Uncertainties about future tax and health care costs could be inhibiting permanent job growth, shifting more of labor force to temporary and part-time employment:
Overall, since 2007 there has been a net loss of 9.8 million full-time jobs, but a gain of 2.3 million part time jobs.
The increase in part-time employment is not entirely voluntary. About 31 percent of current part-time workers prefer full-time jobs. According to the Bureau of Labor Statistics, from April 2006 to August 2011, the number of part-time workers seeking full-time employment increased from 3.6 million to nearly 8 million.
See more on the trend in temporary employment.
This doesn’t bode well for economic recovery.
With all the uncertainty in the economy, it is easy to understand how firms are reluctant to hire permanent employees.
This is also hitting the youth pretty hard. I have many friends who are recent college graduates and for at least a year were doing temp work — many not even full time.
Understndable. Obama Care is making regular employment too expensive.