Springfield News-Sun (Ohio) (04/06/13) Everdeen Mason

The ASA staffing index came in at 91 in March, up 1.7% from February and 2.4% from March 2012. “Historically, temporary work has grown most rapidly in the first stages of recovery. This recovery seems to be different. The growth in staffing employment has outpaced previous recoveries and lasted longer,” says ASA chief operating officer Steven Berchem. “Until we see greater or stronger economic growth, businesses will continue to be reluctant to hire.”

Kristina Downing, owner of an Express Employment franchise in Ohio, has seen a slowdown in staffing extend from the fourth quarter into the first quarter, which she attributes to concerns about global and domestic economic issues, the loss of manufacturing contracts, and concerns about the Affordable Care Act. However, Jay Miller, general manager of the Upper Valley Pike office of Staffmark, says temporary hiring has picked up, and more employers are testing out workers before hiring them on a permanent basis.

Wall Street Journal (04/05/13) Ben Casselman

The U.S. work force participation rate slipped to 63.3% in March, marking a 34-year low, as close to 500,000 people exited the labor market. Of these drop outs, more than 50% were under age 25, partly reflecting an increase in college attendance but also indicating that this demographic continues to have troubling finding employment. Meanwhile, the work force participation rate for those age 25 to 54 hit a 29-year low of 81.1%. The rising number of labor force drop outs could affect the economy over the long term, leaving a smaller share of the population to support the economy as millions of Baby Boomers retire. Moreover, those returning to work may have to accept lower-paying jobs or contend with missed early-stage career opportunities that could have boosted earnings later on.

Wall Street Journal (04/07/13) Leslie Scism; Jon Hilsenrath

The U.S. work force participation rate has declined to the lowest level seen since 1979, and many of the “missing” workers are receiving federal disability benefits. If those workers don’t return to the work force, they could cost the economy tens of billions of dollars annually in lost wages and tax revenues.

Michael Feroli, chief U.S. economist for J.P. Morgan, estimates that since the recession, the worker exodus to the federal disability program accounts for as much as 25% of the decline in work force participation rates, which could have far-reaching economic consequences. Experts say many of the people in the program are unlikely to leave it, because there is little incentive for them to do so. As of March, 8.9 million Americans were participating in the federal disability program, or 5.4% of the civilian work force ages 25 to 64, up from 1.7% of the work force in 1970.