Shaky economy leads to more temporary hiring in Tennessee

07.25.2012


Shaky economy leads to more temporary hiring in Tennessee
Shaky economy leads to more temporary hiring in Tennessee

Like many professionals, Mary Allen, of Nashville, Tennessee, faces some uncertainty when it comes to her job, but that is not a concern for her. 

As a temporary worker, Allen knows that she'll hang around with the company for as long as she is needed. After that, she'll likely use a staffing agency to find more work, according to The Tennessean.

"Temp jobs, they’re more friendly and more open to giving people a chance to work," said Allen, who has made a living out of temp work for years. 

Allen's experience is shared by many across Middle Tennessee and the rest of the country. With economic uncertainty growing with every jobs, manufacturing and services report, employers have become more hesitant to take on full-time workers. This trend isn't expected to let up anytime soon, but rather, potentially change for good the way businesses hire.

This strategy of avoiding hiring full-time workers has led to a major boom in job creation among temporary labor, which accounted for 15 percent of U.S. job growth in the first six months of the year, according to IQNavigator Inc., a procurement software company that follows temporary staffing billing rates.

Last month, U.S. companies hired 25,000 temporary workers - almost one-third of the total 80,000 jobs that were created in June, data from the U.S. Bureau of Labor Statistics show. This trend was extended into Tennessee, where the professional and business services industry, which includes temporary employment, added 2,700 jobs in June. Since last year, the sector has added 10,000 jobs.

A large portion of the temp jobs that have been added are in the light manufacturing industry, according to the news source. But despite the strong growth, temp work is still a tiny portion of total employment, making up only 1.9 percent of all jobs in June.

Still, says Tobey Sommer, equity research director at SunTrust Robinson Humphrey Inc. in Nashville, this number is expected to increase to 2.5 percent by the end of 2015 as staffing services continue to grow in popularity.