Wednesday, July 10, 2013

This Post is Only Temporary

And you are lucky to get it, Amurkn:

"Temp hiring booms, outpacing other sectors" by Christopher S. Rugaber |  Associated Press, July 08, 2013

WASHINGTON — Hiring is exploding in the one corner of the economy where few want to be hired: temporary work.

From Walmart to General Motors to PepsiCo, companies are increasingly turning to temps and to a much larger universe of freelancers, contract workers, and consultants....

Welcome to a world without unions.

Hiring is always healthy for an economy. Yet the rise in temp and contract work shows that many employers aren’t willing to hire for the long run....

RelatedA New Golden Age For Corporate Profits

 US banks earned more from January through March than during any quarter on record

It's a two-tiered $ociety now, folks.

Driving the trend are lingering uncertainty about the economy and employers’ desire for more flexibility. Some have also sought to sidestep the new health care law’s rule that they provide medical coverage for permanent workers. Last week, the Obama administration delayed that provision for a year.

Warned about that, but we were told no, no, they won't be doing that. Another oops for Obamacare. 


"House Republican leaders on Tuesday seized on the Obama administration’s one-year delay of a requirement that employers offer health insurance or face penalties, demanding the same postponement for the mandate on individual insurance purchases and promising a series of showdowns aimed at dividing Democrats from the White House. Some Democrats were also dismayed by the White House’s actions. Senator Tom Harkin of Iowa, chairman of the Senate Health, Education, Labor and Pensions Committee, questioned whether Obama had the authority to unilaterally delay the employer mandate."

Now they are worried about his executive authority? But the spying on them and their offices.... ?? 

Certainly I agree with Republicans there. Hey, if an exemption is good enough for big business it is good enough for you!

The use of temps has extended into sectors that seldom used them in the past — professional services, for example, which includes medicine and information technology.

Was Snowden a temp?

Related: Sunday Globe Special: H1-B Hijacking 

And there are more work visas for cheap foreign labor on the way unless the House Republicans kill that portion of the Senate bill.  

Also see: Sunday Globe Special: Tech Bubble Bursting

Yeah, never mind that pop. 

Temps typically get lower pay, few benefits, and scant job security. That makes them less likely to spend, so temp jobs don’t tend to boost the economy the way permanent jobs do. More temps and contract workers also help explain why pay has barely outpaced inflation since the recession ended.

When pay is to go up they just hire another temp.

Beyond economic uncertainty, Ethan Harris, global economist at Bank of America Merrill Lynch, thinks more lasting changes are taking root. ‘‘There’s been a generational shift toward a less committed relationship between the firm and the worker,’’ he says.

Banker bulls*** that is beyong belief. 

An Associated Press survey of 37 economists found three-quarters thought more use of temps and contract workers represents a trend — intensified by the depth of the recession and the tepid pace of the recovery. Long-term employment isn’t a cost all companies want to bear anymore.

‘‘There’s much more appreciation of the importance of having flexibility in the workforce,’’ said Barry Asin of Staffing Industry Analysts.

I can't take this bu$ine$$ speak anymore.

This marks a shift from what economists used to call ‘‘labor hoarding’’: Companies typically retained most of their staff throughout recessions, hoping to ride out the downturn.

Executives say temps help companies stay competitive. They also argue temp work can provide valuable experience.

Temp hiring has accelerated even though the economy has 2.4 million fewer jobs than five years ago....

Oh, so the not-so-insignificant imprecision is actually 400,000 jobs and people's lives. 

And you wonder why I'm tossing the Boston Globe bu$ine$$ section's economic reports?


I think I will leave this post up despite the hook of a title.