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Does temp slowdown mean economic woes ahead?

May 23, 2016

The Wall Street Journal reported the temporary employment sector lost 27,400 jobs since December, reversing a trend from the preceding five years when the category outpaced overall employment. “That suggests the sector, which did add jobs in April, bears careful watching, especially because the slowdown comes alongside other red flags,” according to the article. However, it reported some say it’s too soon to declare the end of the industry’s expansion. “When temp employment is moving sideways, as it is now, it could mean things are frothy and firms are jumping straight to permanent hires,” Erik Weisman, economist at MFS Investment Management, told the Journal. “Or it could signal we’re on the precipice of a downturn and firms don’t want to hire, and even start firing temp workers.”