The use of temps has even ventured into industry sectors that rarely hired them in the past like medicine and information technology. Whilst executives argue that temps help them stay competitive and bring valuable expertise and experience to a company, these workers typically receive lower pay and few benefits. They also have no real job security. The new trend seems to be born out of a lingering uncertainty about the economy and employers’ urge for more flexibility. Some employers, though, also want to avoid the new health care law in the U.S. which would afford them to provide medical coverage for permanent workers. 

The effects that these types of employees cause for a country’s economy are quite considerable, as temps are less likely to spend, so not boosting the economy in the same way permanent jobs do. More contract workers also explain why pay has barely outpaced inflation since the end of the recession according to the Boston Globe.

Apart from contract jobs, tech hiring accounted for 10 per cent of the U.S. employment gains. Salaries, however, were flat or slightly higher according to analysts. Overall the U.S. unemployment rate is predicted to fall further – from 7.6 per cent in May 2013 to below 7 per cent by the end of next year according to the newest OECD employment outlook report.

Sources: BBC; Computerworld; The Boston Globe