?Minnesota employers are hiring more temporary workers than ever before, in a dramatic shift that partly reflects their desire to stay flexible amid the slow economic recovery.
Even as the state has regained nearly all the jobs lost in the downturn, employers have become significantly more reluctant to make permanent offers. The reasons include concern about impending changes in federal health care law, as well as a trend toward outsourcing some functions to staffing firms.
?Generally by this far into the recovery, we would start to see the use of temporary employment start to plateau or even fall slightly, but that has not been the case,? said Tim Doherty, owner of Doherty Employment Group based in Edina.
The number of temporary jobs in Minnesota ballooned in June to 68,199, an all-time record, and temp hiring has been rising 14 times faster than overall hiring since the recession, according to data released this week by the Minnesota Department of Employment and Economic Development. The trend is national, with temporary positions growing by 40 percent in the United States over the past four years, compared with 4 percent growth in overall hiring.
CareerBuilder said in its midyear forecast that 31 percent of employers plan to hire temporary or contract workers, up from 21 percent a year ago.
?We have a lot of companies that still have hiring freezes, but they can justify bringing in temporary help or contract help,? said Jeanine Janos, a regional manager for Jeane Thorne Inc., a Minneapolis staffing firm.
Historically, a spike in temp jobs is a good sign for the economy, because economists view contract work as a leading indicator for hiring in general. The idea is that as demand for labor picks up, temps are the first to get the call.
?Back before the Great Recession, back when we had a really tight labor market, it was a good indicator of potential future demand,? said Tom Stinson, an economist at the University of Minnesota.
It may be less of a good sign now, Stinson said, because it partly reflects uncertainty over Obamacare.
One provision of the health care law requires companies with the equivalent of 50 full-time employees to either provide all their workers with health insurance or pay a penalty.
This is on employers? minds, said Doherty, Janos and Stinson. If managers can keep their head count below 50, they can avoid the new regulation, which the Obama administration this month announced will be delayed by a year.
Source: http://www.startribune.com/business/216314721.html
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