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Weighing Costs, Companies Favor Temporary Help
By MOTOKO RICH
Temporary workers are starting to look, well, not so temporary.
Despite a surge this year in short-term hiring, many American businesses are still skittish about making those jobs permanent, raising concerns among workers and some labor experts that temporary employees will become a larger, more entrenched part of the work force.
This is bad news for the nation’s workers, who are already facing one of the bleakest labor markets in recent history. Temporary employees generally receive fewer benefits or none at all, and have virtually no job security. It is harder for them to save. And it is much more difficult for them to develop a career arc while hopping from boss to boss.
“We’re in a period where uncertainty seems to be going on forever,” said David Autor, an economist at the Massachusetts Institute of Technology. “So this period of temporary employment seems to be going on forever.”
This year, companies have hired temporary workers in significant numbers. In November, they accounted for 80 percent of the 50,000 jobs added by private sector employers, according to the Labor Department. Since the beginning of the year, employers have added a net 307,000 temporary workers, more than a quarter of the 1.17 million private sector jobs added in total.
One worker who has been forced to accept temporary jobs is Jeffrey Rodeo, 43, who was laid off 14 months ago from his job as an accounting manager at a produce company in Sacramento. He has applied for nearly 700 full-time positions since then, but has yet to receive an offer. Meanwhile, to stay afloat and keep his skills fresh, he has worked on short-term stints at four different employers.
This year, 26.2 percent of all jobs added by private sector employers were temporary positions. In the comparable period after the recession of the early 1990s, only 10.9 percent of the private sector jobs added were temporary, and after the downturn earlier this decade, just 7.1 percent were temporary.
http://www.nytimes.com/2010/12/20/bu...p.html?_r=1&hp
By MOTOKO RICH
Temporary workers are starting to look, well, not so temporary.
Despite a surge this year in short-term hiring, many American businesses are still skittish about making those jobs permanent, raising concerns among workers and some labor experts that temporary employees will become a larger, more entrenched part of the work force.
This is bad news for the nation’s workers, who are already facing one of the bleakest labor markets in recent history. Temporary employees generally receive fewer benefits or none at all, and have virtually no job security. It is harder for them to save. And it is much more difficult for them to develop a career arc while hopping from boss to boss.
“We’re in a period where uncertainty seems to be going on forever,” said David Autor, an economist at the Massachusetts Institute of Technology. “So this period of temporary employment seems to be going on forever.”
This year, companies have hired temporary workers in significant numbers. In November, they accounted for 80 percent of the 50,000 jobs added by private sector employers, according to the Labor Department. Since the beginning of the year, employers have added a net 307,000 temporary workers, more than a quarter of the 1.17 million private sector jobs added in total.
One worker who has been forced to accept temporary jobs is Jeffrey Rodeo, 43, who was laid off 14 months ago from his job as an accounting manager at a produce company in Sacramento. He has applied for nearly 700 full-time positions since then, but has yet to receive an offer. Meanwhile, to stay afloat and keep his skills fresh, he has worked on short-term stints at four different employers.
This year, 26.2 percent of all jobs added by private sector employers were temporary positions. In the comparable period after the recession of the early 1990s, only 10.9 percent of the private sector jobs added were temporary, and after the downturn earlier this decade, just 7.1 percent were temporary.
Several factors could be contributing to the trend. Many businesses now tend to organize around short- to medium-term projects that can be doled out to temporary or contract workers.
Donald Lane, chief executive of Makino, a manufacturer of machine tools near Cincinnati, said his company would increasingly outsource projects to contract firms that pull together temporary teams. When installing a large machine, for example, Mr. Lane said the company could appoint one full-time supervisor to oversee a number of less skilled short-term workers.
Mr. Lane said he hoped to raise Makino’s share of temporary employees from 10 to 15 percent now to about 25 percent in the future.
Flexibility is another factor. Corporate executives, stung by the depth of the recent downturn, are looking to make it easier to hire and fire workers. And with the cost of health and retirement benefits running high, many companies are looking to reduce that burden. In some cases, companies wrongly classify regular employees as temporary or contract workers in order to save on benefit costs and taxes.
Donald Lane, chief executive of Makino, a manufacturer of machine tools near Cincinnati, said his company would increasingly outsource projects to contract firms that pull together temporary teams. When installing a large machine, for example, Mr. Lane said the company could appoint one full-time supervisor to oversee a number of less skilled short-term workers.
Mr. Lane said he hoped to raise Makino’s share of temporary employees from 10 to 15 percent now to about 25 percent in the future.
Flexibility is another factor. Corporate executives, stung by the depth of the recent downturn, are looking to make it easier to hire and fire workers. And with the cost of health and retirement benefits running high, many companies are looking to reduce that burden. In some cases, companies wrongly classify regular employees as temporary or contract workers in order to save on benefit costs and taxes.
Others are starting to face the prospect that they could move among temporary assignments for the rest of their careers.
Jose Marin, 50, known as J. D., lost his technology job in Miami in February and moved to North Carolina to live with his sister. After months of looking for a permanent job, he signed on with Modis, a unit of Adecco, and in August began a temporary assignment for a financial services company in Cary, a town west of Raleigh.
While grateful for the job, he longs for a permanent position. “I’m still old-fashioned and I still want to work for a company where I make a difference and I’m going to be there to retire,” said Mr. Marin. “I know that’s wishful thinking.”
Jose Marin, 50, known as J. D., lost his technology job in Miami in February and moved to North Carolina to live with his sister. After months of looking for a permanent job, he signed on with Modis, a unit of Adecco, and in August began a temporary assignment for a financial services company in Cary, a town west of Raleigh.
While grateful for the job, he longs for a permanent position. “I’m still old-fashioned and I still want to work for a company where I make a difference and I’m going to be there to retire,” said Mr. Marin. “I know that’s wishful thinking.”