Daily News

View All News

Temporary job growth jumps in July, penetration rate increases

August 05, 2016

Temporary help jobs rose 17,000 in July vs. the previous month, according to seasonally adjusted numbers released today by the US Bureau of Labor Statistics.

The year-over-year growth rate for temporary jobs in the US ticked up to 1.9% in July. The number of temporary jobs reached 2.93 million, its highest level since December.

In addition, the temporary penetration rate — temporary help services jobs as a percent of total employment — rose to 2.03% in July from 2.02% in June. The BLS also revised upward the number of temp jobs in June to 2.91 million from the initially reported 2.90 million.

Total nonfarm jobs rose by 255,000 on a seasonally adjusted basis, exceeding expectations. The unemployment rate was 4.9% in July, unchanged from June. The college-level unemployment was also unchanged in July from June at 2.5%.

Nonfarm jobs had been expected to increase by only 180,000, according to a report by James Marple, senior economist at TD Economics.

“Even as economic growth has been lackluster, the job market has remained sparkling bright. Job growth of 255k is more than double the level necessary to keep downward pressure on unemployment,” Marple wrote. “A weak economy and strong labor market presents something of a challenge for the Federal Reserve. The combination suggests at least some of the factors behind slow economic growth are structural and won't be overcome by additional monetary stimulus.”

GDP in the US grew at an annual rate of only 1.2%, according to an advance estimate released last week.

“With corporate profits and business investment turning negative in recent quarters, one of the main questions related to the US economy is whether employers will slow down hiring,” The Conference Board said in a statement released today after the jobs numbers. “July’s strong job growth, on top of the strong gain in June, suggests that so far the answer is no. The fact that employment growth remains robust even when GDP grows at a 1% rate is disconcerting, as it implies that labor productivity is continuing to weaken from already anemic rates. One potential explanation is that much of the weakness in GDP in recent quarters comes from manufacturing and mining, which are both capital intensive industries, so the impact on overall employment is limited.”