Good News: Temp Firms Say Demand Up in August

From the Wall Street Journal | Aug 25, 2009

By Cari Tuna

Demand for temporary and contract employees increased "markedly" this month, according to the American Staffing Association, a potential augur of improvement in the overall jobs picture.

The group's Staffing Index rose to 75 in the two weeks ending Aug.
16, from 71 in early July, outpacing gains in the same period last
year. The index, which measures demand for temporary workers among ASA
member firms on a 100-point scale, has been hovering between 71 and 73
since hitting an all-time low of 69 at the end of December. The ASA
says its members generate 85% of sales in the U.S. temporary-staffing
industry.

A sustained rebound in temporary staffing levels could bode well for
the overall labor market. Temp staffing is often a leading indicator of
overall employment because cautious employers are more likely to add
temporary workers before hiring full-time staff following a recession.

The rebound hasn't shown up in data from the Labor Department's
Bureau of Labor Statistics, which lags the Staffing Index. Employment
in temporary help services edged down by less than 1% to 1.74 million
jobs in July, according to the BLS. The industry has shed 844,000 jobs
since the recession began, but "the declines have lessened
substantially over the past 3 months," the BLS said in its latest
employment report. Overall job loss in the U.S. slowed in July as the
economy shed 247,000 jobs, and the unemployment rate fell slightly to
9.4 percent.