Part-time hiring not the sign it once was

By Jeannine Aversa

Associated Press

It’s not the signal it used to be.

When employers hire temporary staff after a recession, it’s long been seen as a sign they’ll soon hire permanent workers.

Not these days. Companies have hired more temps for four straight months. Yet they remain reluctant to make permanent hires because of doubts about the recovery’s durability.

“There has been an increase in temp staffing since October or November,” said Michelle Brewer, senior manager in Atlanta for staffing company Ajilon. “There are companies that have business — they still need to get the work done. But they don’t want to commit to a higher head count.”

Even companies that are boosting production seem inclined to get by with their existing workers, plus temporary staff if necessary.

“I think temporary hiring is less useful a signal than it used to be,” says John Silvia, chief economist at Wells Fargo. “Companies aren’t testing the waters by turning to temporary firms. They just want part-time workers.”

The reasons vary. But economists and business people say the main obstacle is that employers lack confidence that the economic rebound has staying power. Many fear their sales and the overall economy will remain weak or even falter as consumers spend cautiously.

Ajilon’s Brewer has been in the staffing industry for 13 years. The painful downturn, the lingering weakness, the caution about commitment — it’s all new, she said.

“I have not worked through anything like this before. Nothing compares to what we have seen the last two years.”

Still, hiring managers tell her they are optimistic about the next quarter or two, she said. “Last year at this time, it wasn’t that hopeful. At least, people are talking about it.”

Michael E. Kanell contributed to this article