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US temp jobs up almost 3.8% year over year in March, but jobs growth down from February

April 06, 2018

US temporary jobs were up almost 3.8% in March compared to the same month last year, but month-over-month growth eased, according to seasonally adjusted numbers released today by the US Bureau of Labor Statistics.

Temporary help services jobs edged down by 600 in March from February, but were still up by 109,400 year over year. February was a particularly strong month, although its initially reported month-over-month gain of 26,500 temp jobs was revised down to 21,000 this month.

Temp jobs also fell, on a month-over-month basis, by 1,700 in January and 1,000 in December — although they remain up year over year.

“Three of the last four months have seen declines in temporary help employment, with an average rise of only 4,400 jobs per month, suggestive of the sideways trend to be expected in the latter stages of an economic expansion,” according to Tony Gregoire, research director at Staffing Industry Analysts.

The temp penetration rate — temporary jobs as a percent of total employment — was unchanged in March from February at 2.04%.

Total nonfarm jobs rose by 103,000 on a seasonally adjusted basis in March, a sharp drop from the gain of 326,000 in February, which had been revised up from 313,000. The US unemployment rate remained at 4.1% in March for the third consecutive month. The college-level unemployment rate — which can serve as a proxy for professional employment — edged down to 2.2% in March from 2.3% in February.

However, labor markets remain tight as average job creation on both a three- and 12-month average basis remains very fast for the late stage of the current economic expansion, according to Brian Schaitkin, senior economist at The Conference Board. This fast employment growth is creating even tighter labor markets as overall participation rates have remained flat because more workers are aging out of prime working years.

“Overall, nearly all sectors, except for retail and information, have rising employment trends,” Schaitkin said in a statement. “Job growth was less widespread this month, however, manufacturing continued to add positions supported by the current strength of consumer demand. In the coming months, US trade policy uncertainty may make some firms reluctant to hire, fearing supply chain disruptions, while others may hire more domestic workers as a hedge against such disruptions.”

In a comment on the jobs report, Randstad Sourceright’s Rebecca Henderson noted the record-low unemployment gives women a chance to demand pay equity.

Tuesday is Equal Pay Day, the date that symbolizes how far into the year women must work to earn what men earned in the previous year.

“Today’s job numbers come on the heels of a new analysis that shows American women continue to be paid less than men in nearly every occupation and across all wage levels,” Henderson said. “While this news may come as no surprise to many, global employers are beginning to turn the tide as the international labor market continues to shift.”

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