More temp hires point to recovery
Agencies report nearly 15 percent gains over a year ago
Temp agencies have been placing more workers in jobs than a year ago, according to recent state and federal data, a signal that employers may start beefing up their full-time work forces soon.
Temporary help services employment across the U.S. rose by a seasonally adjusted 2.0 percent from March to April, according to the U.S. Department of Labor. Unadjusted figures showed an even larger gain of 3.6 percent in that month, with a 14.6 percent jump from a year ago.
In Maryland, employment services jobs rose by a seasonally adjusted 8.2 percent in March from February, according to the state Department of Labor, Licensing and Regulation. That was a higher gain than most industries, including health care and technical services jobs. State figures for April are due out Friday.
Temp employment can be a key economic indicator, often a precursor to job gains in other industries, staffing officials say.
"Businesses remain cautious about adding too many permanent workers too soon," Richard Wahlquist, president and CEO of the American Staffing Association in Alexandria, Va., said in a statement. "A growing number are turning to staffing firms for flexible work force solutions as the economy continues to recover. This is good news, because it means more jobs for American workers."
Manpower, a Milwaukee staffing company that also has numerous offices in Maryland, reported its first-quarter revenue rose 13 percent to $4.1 billion from a year ago. Net earnings were $2.8 million, compared with a net loss of $1.8 million a year earlier.
"We are experiencing strong cyclical trends and even stronger secular trends as companies need to respond to the increased demand but want to remain agile," Jeffrey A. Joerres, Manpower CEO, said in a statement.
An index from the staffing association that charts temp employment has shown continued gains in April, with the national level 21 percent higher during the week ending May 2 from the corresponding week in 2009.