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SSRN Electronic Journal
Article . 2015 . Peer-reviewed
Data sources: Crossref
EconStor
Research . 2015
Data sources: EconStor
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Temporary Help Employment in Recession and Recovery

Authors: Susan N. Houseman; Carolyn J. Heinrich;

Temporary Help Employment in Recession and Recovery

Abstract

The temporary help industry, although small, plays a significant role in the macro economy, reflecting employers’ growing reliance on temporary help agencies to provide flexibility in meeting staffing needs. Drawing on detailed temporary-help order data between 2007 and 2011 from a large, nationally representative staffing company, we provide insights into the characteristics of temporary help work, employers’ use of temporary agencies to screen workers for permanent positions, and the industry’s role in labor market adjustment over the business cycle. We estimate that the temporary help industry accounted for a large share of gross job losses and job gains over this period, as well as for a sizable share of net separations and hires. Nearly a third of assignments were observed to end prematurely due to worker performance problems (largely soft skills deficiencies) or quits, and hire rates of workers in temp-to-hire contracts were low. Although most temporary help assignments are short-lived, during the recession, companies lengthened temporary help assignments and reduced hiring from their pool of temps, possibly in response to economic uncertainty. Nominal wage growth among new temporary hires was weak over the five-year period and failed to keep pace with inflation.

Country
United States
Keywords

J49, temporary jobs, staffing firms, 330, Economics, J21, J23, labor market adjustment, Social and Behavioral Sciences, business cycle, temporary work, LABOR MARKET ISSUES, Employment relationships, temporary employment, temporary help employment, ddc:330, employment agencies, Labor Economics, temporary agencies, Great Recession, temporary help employment, business cycle, jel: jel:J21, jel: jel:J23, jel: jel:J49

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    popularity
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    influence
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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
6
Average
Average
Average
bronze