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Temps Represent Chunk of Job Gains in June

July 06, 2012

The “temporary help services” industry added 25,200 jobs in June, representing almost a third of the 80,000 total nonfarm jobs added by the U.S. in June, according to seasonally adjusted numbers released today by the U.S. Bureau of Labor Statistics. Revised numbers for May show that the temp help industry added 17,500 jobs that month instead of the 9,200 gain initially reported by the bureau.

Overall, temporary help employment totaled approximately 2.53 million in June, representing an increase of 245,400 jobs, or a gain of 10.7 percent, on a year-over-year basis.

The percent of temporary employment to total employment — the temporary help penetration rate — edged up to 1.90 percent in June from 1.89 percent in May

However, employment rose by just 22,500 jobs during June in the “employment services” industry — which includes temporary employment as well as employment placement agencies, executive search services and professional employer organizations — for total employment of approximately 3.19 million.

Total nonfarm jobs in the U.S. rose by 80,000 in June to almost 133.1 million, according to seasonally adjusted numbers from the bureau. The U.S. unemployment rate was unchanged at 8.2 percent in June from May. The seasonally adjusted college-level unemployment rate, which can serve as a proxy for professional employment, rose to 4.1 percent in June from 3.9 percent in May.

Today’s total nonfarm job gained proved a disappointment.

“The slow labor market improvement reflected in this month’s 80,000 increase in jobs once again confirms that the better payroll increases in the beginning of the year were another false start,” Kathy Bostjancic, director of macroeconomic analysis at The Conference Board, said in a statement.

“The pullback marks the third straight disappointing year,” Bostjancic, said. “Subdued demand has been the one consistent factor in this sluggish economic expansion.”

Private sector jobs rose by 84,000 jobs in June, according to the BLS. However, the government sector shed 4,000 jobs in June, with most of the losses at the state and federal levels.