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SALT LAKE CITY -- In spite of a bleak jobs report from the U.S. Department of Labor last week, there's a sliver of hope that the economy is recovering on the jobs front.
"Anytime you're going to get changes in the economy--some kind of shifting--the first thing you want to look at is that temporary help industry," says Mark Knold, chief economist for the Utah Department of Workforce Services.
Companies hired a lot more temporary workers last month. That's one "soft" indicator employment may be easing towards a turnaround, says Knold, who uses that figure as his "canary in the coal mine."
It's a trend that hopefully means our economy is coming back to life. A surge in temp jobs means companies here in Utah and across the country need to add workers, but employers are not quite ready to commit to full-time jobs.
Many Utah workers have found a way to make temp agencies work for them. Garrett Young lost his job with a major Utah employer in March. SOS Staffing found him temporary jobs in customer service, accounting and clerical services. He picked up experience and paid the bills.
"I've made a lot of money through SOS Staffing, considering where I was before," Young says. "Now I have a lot of experience; and right now I'm planning on going to school, and it's made things easier."
Last month, temporary agencies nationwide added 34,000 jobs. In spite a double-digit unemployment rate, more temp work is good news.
"A lot of these temporary positions will actually hire you on directly," Young says.
That's one reason the chief labor economist uses the temporary work postings as an economic indicator.
"I've always used the temporary help agency as my 'canary in the coal mine,' so to speak, in terms of looking at the economy," Knold says.
He does not know the exact number of temporary jobs created in Utah, but he says those job postings picked up in September.
"It's probably the most sensitive industry to quick turnings in the economy, whether it's adding jobs or letting jobs go," Knold says.
Employers still hesitate with full-time jobs, as long as they question the recovery. But Kelly Services is optimistic about the rise in demand for temps.
"Companies start with temporary employees, and if they can sustain that growth within the organization, they will hire those employees on," explains Neal Summers, territory manager for Kelly Services.
When the economy was tumbling, the temp industry rapidly lost jobs. Still, it's too early to tell whether the growth in temp work will lead to more full-time jobs.
"Is it going to blossom into a longer trend? We kind of think it will. But there's no guarantee at this point in time," Knold says. "But, again, this is the first turn that we've seen in this industry in at least two years."
As for Young, he's headed back to school to study computer networking. The temporary work gave him valuable work, income, and helped him stay positive.
"It's been really good to be in the workforce," he says. "Especially after being laid off."
Knold says whether employers take the next step in the coming months will determine a lot about the immediate future of the economy.
E-mail: jboal@ksl.com
