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Labor Forecast Predicts 5.0% Increase in Demand for Temporary Workers in 2012 First Quarter

G. Palmer & Associates (01/17/12)

Demand for temporary workers in the U.S. is expected to increase 5.0% on a seasonally adjusted basis for the 2012 first quarter, when compared with the same period in 2011, according to the latest Palmer Forecast. The Palmer Forecast indicated an 8.8% increase in temporary help for the just-ended 2011 fourth quarter. Actual results came in at a 6.2% increase, which was slightly lower than anticipated, reflecting delayed hiring due to uncertainties in the marketplace.

“Our forecast for the first quarter of 2012 follows recent trends showing growth and indicating another increase in demand for temporary workers, marking the ninth consecutive quarter of year-over-year increases,” says Greg Palmer, founder and managing director of the staffing consulting firm G. Palmer & Associates. “However, there have been three consecutive months of downward year-over-year increases, compared with 2010. In addition, there was a surprising sequential decrease of 0.3% vs. the normal 0.3% seasonally adjusted increase from November to December, and a loss of 7,500 temporary jobs in the month of December.”