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US temp penetration moves even higher in November, breaks 2.1% barrier

December 08, 2017

The temporary penetration rate — the percent of US jobs that are categorized in the temporary help industry — moved even higher in November to 2.10% following a trend of growth, according to seasonally adjusted numbers released today by the US Bureau of Labor Statistics. The rate was 2.09% in October and 2.08% in September.

“In February of 2000, the temporary agency penetration rate surpassed 2.0% for the first time. Seventeen years and nine months later, the rate has at last broken the 2.1% barrier,” said Tony Gregoire, director of research, the Americas, at Staffing Industry Analysts.

In November, the US added 18,300 temp jobs, representing a year-over-year increase of 3.9%.

Total nonfarm jobs rose by 228,000 on a seasonally adjusted basis in November.

The unemployment rate remained at 4.1% in November. The college-level unemployment rate — which can serve as a proxy for professional employment — edged up to 2.1% from 2.0% in the prior month.

As the labor market is tightening, employment growth has been gradually slowing in the past couple of years, according to Gad Levanon, chief economist, North America, at The Conference Board. However, current job growth is more than enough to continue tightening the labor market.

“The acceleration in economic activity in a time of already tight labor markets is leading to employers’ attempts to squeeze more out of their existing workers,” Levanon said in a statement. “Indeed, labor productivity has been accelerating in recent quarters. Is it sustainable?”

Randstad Sourceright CEO Rebecca Henderson said November’s strong employment figures include a sizable contribution from freelancers, gig workers and independent contractors hired to fill a broad range of critical positions this holiday season. And its data shows employers plan to take advantage of the growing gig economy well past this holiday season and into 2018.

“Based on Randstad Sourceright’s recent survey, more than 60% of companies expect to shift up to one-third of their overall workforce to contingent talent in the near future,” Henderson said in a statement. “As the labor market continues to tighten, this shift will help employers create a diverse workforce that provides the flexibility that American workers want and the agility that American employers need.”

Click on charts to enlarge.