An article from the Associated Press yesterday highlighted just how deep of a mess this jobs crisis has become.
When employers hire temporary staff after a recession, it’s long been seen as a sign they’ll soon hire permanent workers.
Not these days.
Companies have hired more temps for four straight months. Yet they remain reluctant to make permanent hires because of doubts about the recovery’s durability.
Companies also worry about higher costs related to taxes or health care measures being weighed by Congress and statehouses. That’s what Chris DeCapua, owner of employment firm Dawson Careers in Columbus, Ohio, is hearing from clients.
DeCapua says corporate demand for temporary workers has surged. That’s especially true for manufacturing-related jobs involving driving forklifts, assembling products, packing merchandise and loading it on trucks.
Yet that demand hasn’t spilled over into a demand for permanent workers. And DeCapua doesn’t see it turning around anytime soon.
“There is so much uncertainty, and when there is uncertainty, people and companies hold onto their checkbooks,” DeCapua says.
Companies “don’t want to hire permanent workers and then have to turn around and get rid of them six months later,” he says.
DeCapua likely isn’t alone regarding the trepidation he’s hearing from clients. The unstable economy and likelihood of increased government imposed costs are stifling the economy at both the national and state level.
Fortunately, the tide is ever so slowly turning.