To say the current economic climate has been "thin on good news" would be an understatement.
But here are two data points that represent definite uppers: first, monthly job losses have declined to about 190,000 -- still large and unacceptable, using any macroeconomic model, but light years away from the 500,000 and 600,000 monthly job losses that characterized the financial crisis' acute stage earlier this year.
Second, the hiring of temporary workers increased substantially in October to 34,000; what's more, 44,000 temporary jobs have been added to the U.S. economy since July, according to data compiled by the U.S. Department of Labor. From January 2008 thru July 2009, an average of 44,000 temp positions were lost per month.
The significance of the above? Historically, a rise and sustained turnaround in temp jobs usually precedes an increase in overall employment. Basically, many companies (although by no means all companies) test-the-waters, if you will, by adding first temporary jobs, then formalizing those positions (and others) once it becomes clear that demand and improved commercial conditions are likely to endure.
Hence, if the increase in temporary hiring is sustained over months, that most likely means better days are ahead on the employment front -- that the day of net, monthly job gains for the U.S. economy is getting closer and closer. And when it arrives, that day will be a very bright ray of light for investors, businesses, and employment-seeking citizens, alike.
Google's plan for netbook PCs moves higher into the clouds
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So long peak oil, here comes peak uranium
Reader Comments (Page 1 of 1)
11-09-2009 @ 6:08PM
DON said...
AND THE KEY WORD TEMP,MORE BULL
11-09-2009 @ 7:02PM
william lindblad said...
To another blog:
The government cannot create jobs. The government can only create an impetus to create jobs. The CCC and the WPA were attempts in this direction along with dam building.
Only the dam building was a "JOB". They all share something in common - they were time limited.
To temps:
Possibly a ray of hope. Possibly the other side of the coin.
Productivity is at an all time high which equates to workers being pushed to their fullest extreme. Employers can do this when it is a case of work - or no work. Considering the productivity assessment it could also be that it is far cheaper to hire the extra help on a temp basis rather than full time. I really don't think that everyone is convinced that all hurdles have been overcome.