Even though the unemployment rate remains near 10 percent, the market is looking up for temp workers.
The American Staffing Association said Tuesday that its weekly index of people employed in temporary or contract positions rose to its highest level in nearly two years.
An increase in hiring for temporary positions could be good news for the economy. Conventional wisdom holds that employers often start hiring temporary workers to test the waters before committing to more permanent positions.
The ASA said temporary and contract employment rose 2.08 percent during the week ending Sept. 19, pushing the index up two points to a reading of 98.
That’s the highest reading since Sept. 22, 2008. A base reading of 100 was set in June 2006.
The group also said temporary employment is up 23 percent over the same week a year earlier. The index has generally been on the upswing since the start of the year, although there have been a few dips along the way.
Thanks to Carpe Diem, which first wrote about the data.