While perusing the national news, three headlines jumped out at me simultaneously:
“’Huge relief – U.S. adds 117,000 jobs” – Orange County Register
“Workers who quit jobs for new ones at 3-year high” – San Francisco Chronicle
“Future of work? Temp jobs” – MSNBC
On Aug. 5, the U.S. Bureau of Labor Statistics released information that revealed 117,000 new jobs were added in July.
On the down side, the BLS reported the employment number could have been even higher if not for 37,000 jobs lost in the government employment sector. The biggest drop happened in Minnesota (Gov. Dayton says, "You're welcome.")
The article says people can rest assured the economy is definitely recovering, hence the relief.
That might account for why so many people are quitting their jobs, despite the stagnant unemployment rate.
The U.S. Department of Labor reported that about 2 million Americans quit their jobs in May, the highest level in three years, perhaps because they figure they’ll find a better one in the new economy.
This phenomenon is called employee churn.
ManpowerGroup’s consulting division also released a study saying 84% of employees plan to seek different employment this year.
The staffing agency has benefited from the permanent placement business because of this, as is another large recruiting firm, Robert Half International.
Temporary hiring is also benefiting, according to a McKinsey Global Institute report. They say that in the next five years, employers will be relying more on temp, part-time or contract workers, because employees have given up hope of having a full-time job with health insurance and a 401(k).
OK ... then why are people job switching? I sincerely doubt they're downgrading on their own accord.
Staffing Industry Analysts posted an article that said “fewer workers [are] expressing confidence in the strength of the economy and job availability,” and temp employment remained “flat” in July.
Yubanet reports that the temp sector only added 300 jobs last month, and are down by more than 17,000 jobs since this spring.
“If businesses are holding back on hiring because they are worried about regulations, taxes or debt default, then they would be hiring temps in large numbers,” the article says.
Yet here comes an article from Reuters today trying to debunk the theory of Recession II.
Staffing experts say there “probably” won’t be another recession on the heels of the last one.
That’s reassuring. Their reasoning?
“You’re not seeing temp jobs fall,” said SFN Group CEO Roy Krause.
“If we were headed for a recession, we would see clients letting go of large numbers of temporary employees,” said Tig Gilliam, head of operations at Adecco’s American branch.
On the contrary, they’re seeing the demand for temps going up because of economic uncertainty, though permanent hiring isn’t exactly booming.
I feel like I'm watching a game of tennis.
One party serves up the notion of a forward-moving economy. The opposing teams lobs back with a vote of no confidence. Back comes a serve of assurance that there won't be another recession.
And so on.
It becomes endless, as the claims never come to a similar conclusion.