Review about emergence of temporary employment

Temporary employment has emerged as a powerful and most sought after avenue for generating employment as well as revenues/wages for both the employer and the candidate. The global recession and uncertainties about the future and the tax and health care costs inhibiting the permanent jobs has resulted in the majority of labor force in United States to shift to temporary and part-time employment.   The temporary employment, which was relatively new outside of the agricultural and other seasonal work, has grown enormously. According to the Bureau of Labor Statistics or BLS, there were mere 20,000 temporary employees in 1956 that has grown massively by about 2.7 million temporary workers accounting for about two percent of employees in 2000. From 2004 to 2008, temporary employment grew almost by fifty percent in the business and financial sectors.

The number of temporary employees as a percentage of U.S work force is expected set new records during 2013. In the United States employment pipeline, about 913,200 temporary employees were added since June 2009, which is about 19% of all new jobs. During April-2013, the number of temporary employees rose to 2.66 million that are just 11,300 short of April-2000 record as per the data released by the U.S. Bureau of Labor Statistics.

Due to major health care reforms, more and more companies are utilizing the services of staffing firms to meet their consumer demands. In addition, companies are reluctant to hire permanent employees amidst speculations about the impending weakness in economic expansion that has been good news for staffing agencies. Companies in different business sectors such as automobiles, pharmaceuticals, and retailing are relying more on temporary staffing as staffing companies or firms are allowing these companies to be more agile especially with project based, time specific positions that require specialized expertise.

The temporary staffing industry has added more jobs in the United States over the last three years as per the report of the American Staffing Association. Temporary jobs have become so widespread that it has become a norm rather than exception due to globalization, deindustrialization and technological change that is beyond the control of political environment.

The recent health law popularly known as Affordable Care Act is also promoting larger organizations to use the services of temporary staffing agencies to hire more part-timers or temporary workers. Companies are reluctant to ramp up their full time work force or employees as they are realizing the fact that they can accomplish their targets through temporary workers. This trend may continue further in the coming years also.