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Labor Forecast Predicts 5.9% Increase in Demand for Temporary Workers

G. Palmer & Associates News Release (04/10/13)

Demand for temporary workers in the U.S. is expected to increase 5.9% on a seasonally adjusted basis for the 2013 second quarter, when compared with the same period in 2013, according to the Palmer Forecast.

The Palmer Forecast indicated a 4.7% increase in temporary help for the just-ended 2013 first quarter. Actual results came in as slightly higher at a 6.0% increase. Results, in part, reflected increasing uncertainty on behalf of employers with respect to permanent hiring.

Temporary help created approximately 11.0% of new jobs reported since the recovery began, and 23% in March, while representing only about 2% of the total labor market. There is also speculation among temporary industry veterans that the increase could be an early sign of the anticipated positive impact on temporary labor relative to the Affordable Care Act, planned for implementation in 2014. At such time, companies may begin to increase the use of temporary labor as a strategic measure to offset anticipated increases in health care costs.