When Temp Jobs Raise, Does the Economy Recover?

While the housing recovery continues, you would expect there to be less temporary jobs and more permanent ones, right?

Well, people must have been asleep the day this was discussed in economics class as ‘temp’ jobs have jumped more than 50% to 2.7 million (the most since 1990) according to an article in the Huffington Post. The reasons why temporary jobs have soured as opposed to permanent ones can be many:

Aside from the recession, which have officially ended in 2009 but still sends plenty of shockwaves through the economy, employers might just be afraid of hiring full time, permanent employees in case everything goes south again and employees have to be let go; after all, concrete signs of economy recovery did not appear until April of this year.

Other reasons are attributed to less commitment among the newer generations than older generations.

I approach this one cautiously.

I don’t think people are less committed to working, but I think they are less committed to work for someone who is not committed to them. Older generations stayed with employers longer because the employers took care of them, providing health and retirement benefits as well as bonuses for a job well done. Now, this is not the case. In fact, one of the reasons for so much temporary work can be attributed to employers not wanting permanent employees they will have to provide healthcare for, as per the new law. The strain of the economy has made permanent work less likely, therefore, employees are becoming less committed as they don’t know how long their job will last anyway. It’s a vicious circle that shows no sign of slowing down. Hopefully, economic recovery continues enough for more permanent jobs to become available. If not, well, we’ve adapted before–when all the factory work went South then East–and we’ll adapt again. At PS Financial Services, a Florida company specialized in reverse mortgages, we offer the best service for all our clients. Give us call at (888) 845-6630 or click here to begin your journey to financial security.