MM Factoid: U.S. temp hiring increased in October

By Money Matters Editors

In this economy, you take the good news where you can get it, and one such ‘factoid’ of good news was buried deep in the U.S. Labor Department’s most-recent monthly report on the job market, the October report.

The good news? The hiring of temporary workers increased considerably in October to 34,000, with 44,000 temporary jobs having been added to the U.S. economy since July, according to Labor Department data.

The significance of the above is by no means inconsequential. Historically, an increase and turnaround in temp jobs usually precede increases in overall U.S employment. Basically, many corporations (although by no means all corporations) ease into the waters, slowly, 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.

Still, it remains to be seen whether the temp hiring indicator will serve as an accurate barometer in this, the start of the second decade of the globalization era, as it did during the 20th century. But the view from here argues that it will.

And if the increase in temporary hiring is sustained, that most likely means better days are ahead on the employment front – in other words, that the day of net, monthly job gains for the United States is getting closer and closer. And when it arrives, after nearly two years of net monthly job losses, that day will feel like the first spring day after a long, cold, snowy winter – a pleasant day for investors, businesses, and employment-seeking citizens alike.