25% of workers to become temps?

Temporary staffing jumps, leading some experts to predict a quarter of the workforce could fall into that category.

By Kim Peterson Dec 7, 2009 2:43PM
Brown-bag lunch © Digital Vision/Getty ImagesThe November jobs report offered some surprising good news, but one disturbing trend seems to be emerging: Temporary jobs are gaining steam.

These types of jobs are getting so popular, in fact, that some experts predict that 25% of the American workforce could become temps, according to USA Today.
Seems hard to believe, doesn't it? Could a quarter of us really lose the safety net of permanent employment and make a career out of jumping from job to job?

Here's why some people think so:

Projects turn over quickly. Technology and other improvements are drastically cutting the time needed to finish projects.

"Product launches used to take several years –- now it can be only six months," a staffing industry analyst told USA Today. "You need a flexible workforce to ramp up and move to the next project."

Companies want to be nimble. The economic crash left companies agonizing over payroll and other fixed costs. A devastating wave of layoffs followed.

Now, bosses want to be able to react faster when things head south. One way to do that is to use more temps, who can be quickly and easily let go.

Temps are cheaper. No costs for health insurance and other benefits. Less pay and no raises. And to make the pot even sweeter, there's the possibility of hiring overseas contractors.

The November jobs report found that the number of temp jobs increased by 52,000 -- the most since 2004. And many were encouraged by that number, saying that companies first turn to temps before they hire full-time workers. So the temp hires must indicate a new interest in full-time employment.

But what if that's wrong? What if more companies find that temp workers are, for economic and other reasons, preferable to permanent ones?

Where does that leave the American worker?

It will take years for the economy to recover to pre-crash levels. And the state of the U.S. workforce may take even longer. Many of those lost jobs aren't coming back.

It used to be that temps were mainly used for office and clerical work. That's changing, reports USA Today, and now even doctors and engineers are moving into those jobs.

This might be a good time for investors to look into the stocks of temporary staffing companies. Manpower (MAN) says its business rose 10% to 15% last quarter. Other agencies report similar spikes in business.

Related reading:

Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
100 character limit
Are you sure you want to delete this comment?


Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.


StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

123 rated 1
262 rated 2
480 rated 3
651 rated 4
649 rated 5
629 rated 6
616 rated 7
496 rated 8
346 rated 9
111 rated 10

Top Picks

TAT&T Inc9



Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.