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America's Second-largest Employer Is a Temp Agency

cold fjord writes "From the Examiner: '...the second-largest employer in America is Kelly Services, a temporary work provider. ... part-time jobs are at an all-time high, with 28 million Americans now working part-time. ... There are now a record number of Americans with temporary jobs. Approximately 2.7 million, in fact. And the trend has been growing. ... Temp jobs made up about 10 percent of the jobs lost during the Great Recession, but now make up a tenth of the jobs in the United States. In fact, nearly one-fifth of all jobs gained since the recession ended have been temporary.' The NYT has a chart detailing the problem."

21 of 541 comments (clear)

  1. lack of unions and workers rights by Joe_Dragon · · Score: 2, Interesting

    and some places make you an 1099 but boss and work you like an W2 one.

    1. Re:lack of unions and workers rights by Anonymous Coward · · Score: 1, Interesting

      Workers rights, good. Unions? Not so much. They just add an layer of management. It's too easy for companies to get away from unions. You end up with an approach to worker's rights that's weak, fragmented, and outside of trade negotiations. The current union system put the nail in its own coffin due to its Internationalist ambitions, stemming from its roots in global socialist movements. When Free Trade became an issue, the movement was split between those who saw it as an opportunity to extend US-style worker protections to 3rd world countries, and those who saw Free Trade and globalization as a move my corporations to escape from US-style worker protections. Guess which side turned out to be right?

      The proper approach is not unions in their current form. Instead, it's a concept of minimum wage and benefit broken down by profession. Plainly, it should be higher or lower based on your profession. The min wage is currently only relevant to low-end service sector positions. Unions will also have to give up on counter-productive contract positions such as tenure and seniority, which cross over from worker's rights into the realm of workers sitting on their asses and getting paid for it like the bosses do.

      They also need to get out of the public sphere, where they're actually oppressing the majority of labor via taxation and cronyism. Where it the justice in low-end service workers of private industry paying taxes to support tenured teachers who fail to educate their children, so they end up working low-end service jobs too?

      Any real worker's rights movement has to further the positions of laborers whether they pay dues or not.

      Such labor reform will not fly in the Democratic Party (dependant on the current union regime) or GOP (dependent on the business regime). It will have to be a plank in a true populist 3rd party platform. The "Spirit of Wisconsin" that is attempting to demolish PEUs is actually the true pro-worker movement, not the PEUs. It will take time, but eventually reform minded leftists, True Progressives, will realize this.

    2. Re:lack of unions and workers rights by ifiwereasculptor · · Score: 5, Interesting

      Russell called it a long time ago, and look at where we are now. Sometimes I wonder if we'll really transition to a post-consumerist, post-scarcity society, like Paul Fernhout often describes here, or if we'll keep endlessly inventing jobs and functions that do not add to our lives but are infinitely scalable as long as at least two parts are fueling the market in opposite ways, like advertising, laywering, pateting, lobbying etc.

    3. Re:lack of unions and workers rights by Charliemopps · · Score: 5, Interesting

      I think this article is exactly about my primary concern with the idea of a return to manufacturing in the US. Most people think China and Mexico's big advantage is cheap labor. But manufacturing's been in my family for a long time and many of my relatives run large plants. The hourly wage of the employees is a factor, but not nearly as important as many people think. The real problem is being able to scale operations up and down quickly. Can I hire 500 people and have them on the line within a month? Equally, can I let go 500 people just as fast? In mexico and china you certainly can. And with the size of their operations there they might be able to shift those people over to something else. In the US with all of our labor laws you can't do that sort of thing quickly and the loss of even a small contract for a manufacturing plant has devastating repercussions on the floor, with salesman scrambling to find new work quickly. Then when you're at your peak you're turning down contracts for fear of employing too many and having to let them go later. I'm not suggesting that or labor laws are bad on the whole, they are good for society just bad for manufacturing plants.

    4. Re:lack of unions and workers rights by shoes58 · · Score: 4, Interesting

      Well said. I currently work in the identical situation Charliemopps describes. Well, scaled down a bit. We had a huge order of machines that needed to be built IN ADDITION to our normal, busy floor schedule in 2011. Almost killed us. Temp salaries exceeded the "house" salary, and don't get me started on the overtime. Wouldn't happen many other places. Our 140 person shop became 210 for several months. Now, we're down to @100 FTE's. I agree, there are more ways to look at this problem. And I'm a liberal!

  2. employers don't want to paying for health insuranc by Joe_Dragon · · Score: 3, Interesting

    at least under the new bill part timers and temps can get real health insurance with out pre existing conditions or mini med planes that don't cover much.

  3. Lack of commitment by sandytaru · · Score: 5, Interesting

    Employers are afraid to commit and invest in their employees any more. I worked at a call center that was a "temp-to-hire" once - they had around 50 full time employees, including the 20-odd folks in management. Another 100 were temp workers who were brought in, worked to the bone until they burned out, then let go. The highest performers (read: the people who didn't screw up) were offered full time positions with the company, or promotions. The need for this could have been alleviated with better training, but training employees is expensive. Better to hire a lot of them short term through a temp agency, see which ones fit in, and just let the others go, in a constant pattern of churn.

    I quit that place despite being one of the rare full timers, because I decided I'd much rather work on computers directly than just talk to people about them.

    --
    Occasionally living proof of the Ballmer peak.
    1. Re:Lack of commitment by mx+b · · Score: 5, Interesting

      I have seen this attitude on the job hunt lately myself.

      Anecdotal, sure, but here's my favorite story lately: Thru some networking, I managed to grab ahold of the HR Manager at a company recently, and apply to a job that sounded pretty cool. After a few interviews and tests, HR called to make me an offer like this: "Hi, we'd like to make an offer!", "OK, great! What are you thinking?" "Well, we will give you salary of your past employer + 1$/hr AND have you work through one of our trusted third-parties". "Wait... what about a third-party??". I had to tell the guy that I contacted him because I wanted a FULL TIME WITH REGULAR BENEFITS position, not temp/part-time contract. If I wanted that, I could have called the temp agency myself. The hours expected of me, for the marginal pay increase but lack of benefits on a 3 month contract with only vague allusions to future career, made me decline it. I have no idea what they were thinking, that such a "package" is attractive. I heard the usual "we need to make sure it's a good fit" deal, but my attitude is you either believe me at my skills or don't. That statement is just trying to get free work out of me, and I don't appreciate it.

    2. Re:Lack of commitment by Anonymous Coward · · Score: 2, Interesting

      Then why not just hire him as an independent contractor rather than making him go through a "trusted third party" who will siphon quite a bit off the top? Then the package they were offering might have been more compelling.

  4. Economy Needs To Transition by ranton · · Score: 3, Interesting

    Here is our opportunity to lessen our average work week to be less than 40 hours. Now we just need our safety nets to keep up with the fact that a large percentage of the population will probably be working less than 40 hours per week in the future. In my opinion either the percentage of part time workers will continue to rise or the number of unemployed will start to rise. Hopefully we decide to fix the social problems caused by this with welfare programs instead of higher minimum wage laws this time (since small minded regulations create these problems in the first place).

    --
    -- All that is necessary for the triumph of evil is that good men do nothing. -- Edmund Burke
    1. Re:Economy Needs To Transition by mx+b · · Score: 1, Interesting

      I think that's exactly the problem. It shouldn't be cheaper to work one guy to death while others can't find jobs. The tax code, safety nets, regulations, etc., need to be adjusted to correct this problem. I do not trust business to self-correct, because as HR shows, it's all a numbers game without any emotion on what those numbers mean. People should be able to make money for hard work, but lack of empathy on workers never getting to go home is sociopathic.

  5. And yet... by argStyopa · · Score: 4, Interesting

    Yes, having the 2nd largest employer in the country be a temp service speaks volumes about the alleged recovery and job market.

    The first-largest is Wal Mart, which is pretty much the same, and horrible.
    (2.2 million employees, 1.3 mill in the USA)

    Yet curiously omitted from the figures?
    Total number of US government employees? 2.8 million.
    Total local/state employees? 19-some million.
    So ~20 million people in this country get their paycheck from the government....that's what, about 7% of the entire electorate owes their income to the gubbermint? One might argue that due to a clear conflict of interest, they perhaps shouldn't get votes.

    Some people would say that's even MORE revealing about the US (so called), not to mention the tendentiousness of the reporting on the story that it's NOT EVEN MENTIONED.

    --
    -Styopa
    1. Re:And yet... by tibit · · Score: 1, Interesting

      There is nothing that the government can do to recover jobs short of bringing the manufacturing home by establishing protective tariffs. I do mean nothing. Given that tariffs are pretty much a no-go, the job recovery is a no-go as well.

      --
      A successful API design takes a mixture of software design and pedagogy.
  6. Maybe a good thing, if we do it right? by gman003 · · Score: 1, Interesting

    Maybe this is a good thing. Or at least, could be a good thing.

    Imagine, for a metaphor, that workers are computer servers. This would be like virtualization - since the amount of work needed is often variable, being able to quickly "provision" workers could be a benefit. And having an agency that employs these people could provide more stability for the workers, in the way that Amazon and other cloud providers get more heavily-utilized servers. And, as with the computer cloud vs. dedicated server debate, employees they *need* to have, or who provide some function that interchangeable employees cannot, can be hired full-time as they currently are.

    In an ideal world, these workers would get all the benefits of permanent employment (medical coverage, unemployment benefits, even regular promotions and wage increases) via the temp agency. However, in the "anything that reduces corporate profits by one iota is COMMUNISM" economy we have, something tells me this isn't the case.

  7. Wealth economy by Okian+Warrior · · Score: 5, Interesting

    People have been predicting the wealth economy for some time, but have no clear plan on how to transition to that model.

    Here's an opportunity: redefine "full time" to be less than 40 hours. Our productivity is now so high that fewer people need to work, but at the same time we need to employ everyone in order to prevent unrest and revolt.

    Productivity is high, so we should have more leisure time. GDP per capita has skyrocketed, it's doubled since about 1990, and the average citizen would get $40,000 per year if output was distributed evenly. That's every man, woman and child - employed or not, and every year.

    Corporations have to start spending money on the people instead of cutting people out of production. Better educated workers, happier workers, healthier workers make your business stronger and give better return on investment than rehiring. Much better return than "cost accounting", which aims to make the cheapest product people can tolerate.

    Government has to start rerouting wealth from businesses to the people, by way of infrastructure benefits. Free health care and free education, as well as infrastructure projects (national system of renewable power generation, universal internet service, &c) enrich the population without coddling to the lazy.

    Production is met by an ever-dwindling need for human interaction. We should embrace this trend in a way that doesn't require armed revolt.

  8. Re:employers don't want to paying for health insur by cold+fjord · · Score: 5, Interesting

    ‘Bingo’: Iowahawk sums up the jobs report in one tweet about Taco Bell

    David Burge @iowahawkblog

    Unemployment report in a nutshell: the Taco Bell that had 30 40 hour workers now has 40 30 hour workers.

    Behind the Dismal Jobs Numbers: The ‘New’ Economy Takes Shape

    --
    much of left-wing thought is a kind of playing with fire by people who don't even know that fire is hot - George Orwell
  9. Re:Corporate executives are smart. by DogDude · · Score: 5, Interesting

    Actually, I'd argue that not many people thought that so many employers are immoral shit-sucking assholes who'd intentionally try to screw their employees out of health care. I would never imagined that any business would publicly announce they're trying to fuck over their employees. I'm shocked, quite frankly, at hearing so many businesses declare that they are, in fact, run by immoral fucktards who not only couldn't give two shits about their employees, but actually see no problem with it.

    - An employer who pays for health insurance for all of his employees

    --
    I don't respond to AC's.
  10. Enjoy the ALEC Flavor-aid? Look at Ohio, then. by sethstorm · · Score: 2, Interesting

    Unfortunately for you, the Buckeye State managed to defeat a stricter-than-Walker bill and the state is still doing fine. It also helps that the Republicans here know well enough to leave labor relations issues alone lest they incur a third 1958-level event.

    If you want an example of how labor and business can cooperate, Ohio would be one of the better examples. Certain must-pass bills that are considered business-friendly in other states (the ALEC-written, multiply deployed Walker bill as well as the Ohio-defeat-by-referendum-inspired RTW bill) are not necessarily considered business friendly. That, and against the trend for transplants to opt for worker-hostile states (read: the entire South), Honda chose to locate itself in Marysville.

    Certainly there's plenty of pressure against the state to harmonize itself with the South, but I don't expect it to be a law-violating lockstep action.

    (Before you start citing the departure of NCR as evidence of business hostility, they were already on their way out in the 1990's)

    --
    Twitter supports and protects racists - by smearing their critics with the "Hate Speech" label.
  11. Re:Corporate executives are smart. by Rockoon · · Score: 4, Interesting

    Unfortunately, those ideas had to be included to appease Democrats from more conservative districts.

    This idea that things were included to "appease districts" doesnt make sense since "we have to pass it in order to find out whats in it."

    The people did not know what was in it when it was passed. Not only was no attempt made to "appease districts", there was a clear plan to intentionally keep people uninformed about it.

    Clearly the Democrats were trying to appease their campaign donors, not their districts. Yes, thats the insurance companies.

    --
    "His name was James Damore."
  12. Re:This is why population control matters by k6mfw · · Score: 3, Interesting

    I think the strongest correlation was made between birthrate and the educational level of women..

    there was a program on PBS, a reasonably employed woman (not rich but not poor) in India said when she was a young girl, she noticed the more well-to-do families had fewer children than the poor families with lots of children. She determined to not have a lot of children with she married, and get an education before marriage. Documentary went on to illustrate that is not easy for women to do because much of the culture consider women should not have rights to make those kinds of decisions.

    --
    mfwright@batnet.com
  13. it's deliberate by Tastecicles · · Score: 3, Interesting

    you don't want the slaves being told they have rights, do you?

    Advantage to the employer of offering only part time/temporary employment through an agency:

    No unions to deal with (there is no temp union anywhere)
    No pensions to contribute to (part timers don't get an employer-provided pension)
    No liability (for things like temps breaking their wrists - been there, worn the t-shirt, had to foot the fucking medical bill myself!)
    No employers rates (things like tax/NI which is a bloody headache if you're dealing with hundreds of employees all of whim pay tax/NI and since most of them will be on PAYE, it's all on your books which means that for every employee you have to garnish their pay by 20someodd% and send it to the Treasury, on top of which a recent additional tax which is scaled according to how many *full time* employees you have)
    No contracts (except with the agency, where it's pretty much a case of "I have this many spaces, I accept your rates, send me bodies.")
    No medical insurance (you're not employing the slave, you're employing the agency, *the agency* employs the slave and their employment contract more often than not has a specific medical disclaimer. See above)
    No employment tribunals (you're contracting with the agency, not the slave)
    Minimal wage bill (they may pay a premium for being able to hire through an agency, but it's still cheaper than employing someone full time who's not up to the task and not being able to fire them because they've technically done nothing wrong)
    Maximum profit per unit labour

    Advantage to the employee:

    None. I don't count being able to work to pay your rent an advantage, that is a basic need along with food, clothing and medical intervention when necessary.

    --
    Operation Guillotine is in effect.