Wednesday, June 23, 2010

Strong growth in the hiring of temp workers

With a HT to Mark Perry, who has been following this index for some time, I offer this version of his chart that includes an extra year of data. This index "estimates weekly changes in the number of people employed in temporary and contract work," and as Mark notes, the index "is considered to be an accurate leading indicator of employment trends," especially when the economy is coming out of a recession. Indeed, the index started rising beginning in July of last year, six months prior to a rise in the household survey measure of private sector employment.  It has risen 25% from the year-ago period, a strong sign that business activity is expanding and permanent hiring will continue to rise.

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