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Temp jobs up over year despite monthly decline; BLS posts annual revision

February 05, 2016

The number of US temp jobs fell by 25,200 in January when compared to December, according to seasonally adjusted data released today by the US Bureau of Labor Statistics. And the temp penetration rate — temp jobs as a percent of total employment — shrunk to 2.04% in January from the high of 2.06% in December. Still, temp jobs were up 2.89% year over year, although the growth rate has trended down.

January’s job numbers reflect the annual revisions the BLS makes to the numbers.

December is often the peak month for temp staffing employment and January the trough month, the American Staffing Association noted.

“Mirroring the economy at large, staffing firms are reporting mixed demand across major industry sectors,” said Richard Wahlquist, president and CEO of the American Staffing Association. “However, services sectors growth continues — particularly in occupations that require higher skills and education.”

For total nonfarm employment, the US added 151,000 jobs in January. The increase fell short of the median forecast in a Bloomberg survey of economists, which called for a 190,000 advance.

The US unemployment rate edged down to 4.9% in January from 5.0% in December; January’s unemployment rate was the lowest since 2008, USA Today reported. The college-level unemployment rate — which can serve as a proxy for professional employment — was 2.5%, unchanged from November and December.

“While employment growth came in a little below expectations, the main takeaway from this jobs report is more relief than disappointment, said Gad Levanon, managing director, economic outlook and labor markets at The Conference Board.

“Part of the slowdown in job growth in January is a bounce back from the blistering pace of job creation in the fourth quarter, which was clearly above trend,” Levanon said. “The trend of job growth is likely to lead to solid household spending moving forward. The labor market continues to tighten with the unemployment rate declining to 4.9% on its way to 4.5% by year’s end. And this report provides more evidence of wage acceleration, with year-over-year growth in average hourly earnings reaching 2.5%.”

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