As the job market improves, temporary employment is making a progressively decreasing impact on job creation. It’s a sign employers are growing more confident about the economy, both in quality and duration.
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The monthly change in the number of payrolls of temporary-help service businesses averaged 2.2% of monthly gains in total nonfarm payrolls in the July to October period. For the first half of 2012, that percentage was closer to 19%.
The result is a double positive for the economy because it indicates more jobs were created and more of those jobs were full-time positions.
This also bolsters consumer spending. Having a full-time job gives people more confidence in the future than does a part-time job.
Meanwhile, ratings agency Fitch is warning
of another US downgrade if the fiscal cliff is not avoided. The agency says that allowing the current tax laws to expire will throw the US back into a wholly avoidable, needless recession.
A recession in the US carries significant weight for the global economy and ramifications would create a worldwide slowdown just at a time when other economies are experiencing difficulties in public finances.
Addressing the fiscal cliff, even partially, should give US businesses the confidence they need to continue to add full-time positions. Millions of people are still out of work despite the improvements so the employment picture
still has a long way to go.