Jobless Rate Down—and So Is Job Security

Companies reluctant to take risks on long-term hires
By Matt Cantor,  Newser Staff
Posted Jun 16, 2014 12:53 PM CDT
Jobless Rate Down—and So Is Job Security
Job permanency is fading, says an analyst.   (Shutterstock)

The unemployment rate may be down to 6.3%, but that doesn't mean the jobs we have are permanent. The New York Post points to an increasing number of "temp-to-hire" workers, who may be working 40-hour weeks but lack job security and miss out on benefits. Some 3% of the workforce consists of people working temp jobs, up 30% from 2010, per the American Staffing Association. Add in contractors, freelancers, and the like, and 20% of working Americans are in "temp-to-hire" positions, according to the paper.

Many firms are calling on workers to work as temps before they're eligible for full-time positions. This trend applies to a huge range of positions, from those that pay $30,000 a year to those with six-figure salaries, the Post notes. Companies aren't eager to hire long-term workers amid continuing economic uncertainty. "The idea of long-term employment with companies is on the wane,” says an analyst. "If you can’t prove yourself to the company after three or six months, they’ll say thank you very much, and then you move on. About 50% of the time that happens." (More temporary workers stories.)

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