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Temporary workers still the comfortable choice for employers

Posted on May 4th, 2011 Read time: 1 minutes

Growth in the temporary employment sector typically means that employers believe the pace of business is improving but they're not confident enough to hire permanent worker yet, according to The Press Enterprise.

This sentiment is visible across the country, as the monthly index for the American Staffing Association – a Virginia-based group that represents most temporary agencies in the country – was 92 for the month of April. A one-point increase from March, and a 7 percent gain from one year ago, the news source adds.

A lack of movement from companies on the hiring front is common for the first few months of the year, Steve Bercham, vice president of the ASA, tells the media outlet. Businesses tend to concentrate on formulating longer-term plans and production quotas during this time.

"Most of the real growth tends to start early in the third quarter," Berchem adds.

However, the steady rise in temporary workers points to the fact that many companies are still looking to avoid being held liable for an employee's insurance benefits.

MarketWatch points out that when a company uses temp or contract help to avoid providing health insurance, workers may wind up on Medicaid, which means that taxpayers end up covering these workers' healthcare costs.  

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