Rise In Temp Jobs Is Solid Sign Employment Is Recovering

Econompic highlights how rising temporary employment leads to full-time job growth. Hence the recent sharp spike in temporary help (blue) signals good news for new full-time hiring (red) going forward.Keep in mind that their data uses the change in jobs over a six-month trailing period. Thus the latest spike we see for temporary help (blue) isn’t simply Christmas hiring.
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Few relationships are ever guaranteed, but the relationship above makes a lot of sense.

As companies re-hire, first they start with temporary workers in order to minimize their risk. They then begin converting temporary help into full-time positions. Hopefully this historical relationship continues to hold true. Check out more great charts over at Econompic.

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