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Temp jobs rise by 3.3% in July; overall jobs up 157,000

August 03, 2018

US temporary help services jobs rose by 3.3% in July on a year-over-year basis, according to seasonally adjusted numbers released today by the US Bureau of Labor Statistics. Compared to June, the number of US temp jobs rose by 27,900. However, in a revision to the previous month, temp jobs fell by 7,500 in June instead of the 9,300 gain first reported.

The temp penetration rate — temporary jobs as a percent of total employment — rose to 2.05% in July from 2.03% in June.

“Growth in temporary help employment was up 3.3% year over year, maintaining the brisk pace observed this year, and reaching a level of 3.1 million jobs,” said Timothy Landhuis, director of research, North America, at Staffing Industry Analysts. “This robust growth in the volume of temporary workers suggests expansion in the industrial staffing segment, which accounts for roughly half of temporary workers, and is consistent with the continued strong job gains in the manufacturing and construction sectors.”

Total nonfarm jobs rose by 157,000 on a seasonally adjusted basis in July. The US unemployment rate fell to 3.9 In July from 4.0% in June. The college-level unemployment rate — which can serve as a proxy for professional employment — fell to 2.2% in July from 2.3% in June to 248,000 from the initially reported 231,000.

While employment growth was just 157,000 in July, there were large upward revisions to the previous two months, and the overall trend remains strong, according to Gad Levanon, chief economist, North America, at The Conference Board. The BLS updated the gain in nonfarm jobs to 248,000 in June from the initially reported 231,000.

Much of the strength is coming from strong job growth in blue-collar industries like manufacturing and construction, according to Levanon.

“The data tells us a story of two labor markets: significant labor shortages for blue-collar workers versus moderate tightness in white-collar jobs,” Levanon said in a statement.

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