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Temp jobs rise by 3% over year amid increase in US labor force

July 06, 2018

US temporary help services jobs rose by 3.2% in June on a year-over-year basis, according to seasonally adjusted numbers released today by the US Bureau of Labor Statistics. Compared to May, the number of US temp jobs rose by 9,300. And May’s decrease in temporary jobs was revised to 4,700 from the previously reported 7,800.

The temp penetration rate — temporary jobs as a percent of total employment — remained at 2.04% in June.

“Though data can be choppy on a monthly basis, we would not be surprised to see temporary staffing continue to benefit from the favorable changes in the economy in the short-term as businesses adjust to greater demand, after which we expect the industry to cool to a slower pace more typical of the mature phase in an economic cycle,” said Tony Gregoire, research director at Staffing Industry Analysts.

Total nonfarm jobs rose by 213,000 on a seasonally adjusted basis in June. The US unemployment rate was 4.0% in June, up from 3.8% in May. The increase was entirely driven by a surge in the labor force of 601,000 people, according to Staffing Industry Analysts’ analysis of the BLS report.

The college-level unemployment rate — which can serve as a proxy for professional employment — rose to 2.3% in June from 2.0% in May.

The two main messages from today's jobs report are that both employment and the labor force still continue to grow rapidly even though a low unemployment rate means fewer workers are on the sidelines than before, according to Gad Levanon, chief economist, North America, at The Conference Board.

“Given the continued strength in the US economy, we expect more of the same for the labor market in coming months: more people joining the labor force, but strong job growth will continue to tighten the labor market, further accelerating wage growth,” Levanon said in a statement.

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