Temp Jobs Fact Sheet Chris Ruska University at Buffalo Law Student Background We have seen many changes in our economy over the past decade due to the recession. The most notable change being the reliance of employers on the temporary help service industry. In 2013 alone, the temporary help services industry was increased by more than 19,000 employees each month. i This has resulted in more than 70,000 employees being placed in the industry last year. ii The temporary help service industry is a segment of our economy that takes a variety of jobs and careers into account. Temporary employment is used to supplement both blue collar and professional jobs including: (1) Office/Clerical Administrative, (2) Health Care, (3) Engineering, (4) Accounting/Finance, (5) Sales/Marketing, (6) Industrial, (7) Information Technology, (8) Scientific, (9) Management, and (10) Legal. iii National data regarding these jobs and the temporary help service industry are primarily compiled on a yearly basis by the Bureau of Labor Statistics (BLS). iv Additionally, data from 2010 can also be found through the Census Bureau’s online database. Information is scare on a regional level; however, the Center for Employment Opportunities (CEOWorks) has tracked their placements in the temporary help services industry over the past four years. National Scope Demographics In 1999 there were roughly 1.2 million temporary workers employed in the United States. Nearly fifteen years later that number has rose more than 1000%, to 17 million temporary workers employed in the United States.v A large portion of these jobs are held by employees between the ages of 25-34 years old. vi A more in depth examination of demographics reveals that females have a slightly higher employment rate than males in temporary help services. vii However, once employed, males are more likely to lose their temporary employment at a quicker rate than females. viii 1 In addition, the racial composition of the temporary work sector is roughly broken down as follows: White (74%); Black (21%); Hispanic (13%).ix An overwhelming amount of these individuals have graduated or attended college at some point in time. Only 14% have failed to complete a high school education, indicating that the temporary help service industry is becoming more specialized. x Further, one of the most shocking demographical statistics comes from an analysis of the marital status of temporary employees. Nearly 44% of temporary workers are never married. This could be a result of low pay and a lack of job stability. Conversely, this could also be a result of most temporary employees being middle-aged. Impact One of the main drawbacks to temporary employment is the lack of stability. Employees often complain about the length and consistency of their employment assignments. The average length of a temporary or contract employment placement is three to five months.xi Further, over the past year, using temporary help on a day to day basis has increased; however, it is trending downward over the last decade.xii Day to day employment deprives an employee from getting into a routine and contributing in the workforce. Additionally over 5,000 temporary employees lose their job every month, which speaks to the stability of the sector. 2 Another major concern of temporary help service employees is pay and benefits. Employers realize their biggest gains by failing to extended benefits to these employees. The average wage is roughly $15 per hour, but this is skewed by the recent emergence of professional; higher paying temporary employment.xiii Requiring employers to offer these employees benefits would help remedy this disproportionately low wage. Generally, an employee switching from temporary employment to full-time employment will realize a 30% increase in gross pay. Regional Scope Although regional data is not as redily available, bits and pieces can be compiled from the BLS, the Census Burea, and CEOWorks. This data indicates that temporary employment is on the rise in Buffalo. It has increased roughly 11% over the past four years. It is important to note that other areas throughout New York are seeing a much more rapid increase in temporary help services. For example, the New York and Long Island region has has seen a 34% increase in temporary help services over the past four years. Closer to home, Rochester has noticed a 27% increase in the same four year period. This could be a good indicator of the future temporary help services sector in Buffalo. If trends continue, Buffalo will follow suit and temporary employement should increase similarly in our region. Passing legislation may be only option availble to slow the reliance on the rapidly increasing industry. 3 Metro 2009 Temp Help Jobs 2013 Temp Help Jobs Temp Job Growth % Diff Total Job Change (2009-2013) % of New Jobs in Temp Help Poughkeepsie-NewburghMiddletown, NY 1,422 1,639 217 15% 570 38% Rochester, NY 7,412 9,440 2,028 27% 6,638 31% Albany-Schenectady-Troy, NY 2,758 2,969 211 8% 1,222 17% New York-Northern New Jersey-Long Island, NY-NJ-PA 86,265 115,897 29,632 34% 324,461 9% San Jose-Sunnyvale-Santa Clara, CA 12,466 18,473 6,007 48% 71,381 8% Buffalo-Niagara Falls, NY 5,049 5,615 566 11% 9,015 6% QCEW Employees & Non-QCEW Employees – EMSI 2013.2 Class of Worker 2013 Avg. Earnings $33,815 $32,809 $32,487 $39,265 $54,756 $33,035 Additionally, much like on a national level, stability, pay, and benefits are major concerns of temporary employees in the Buffalo region. CEOWork’s has reported that the average length of a placement they make is about four months, which is comparable to the national statistics. The same data reveals that the average pay in this region is $9 per hour.xiv This is a major concern considering the national average is $15 per hour. However, on an annual basis, the average yearly imcome of a temporary employee was roughly $33,000. Working long hours is prevelent in temporary help services and could be a possible explination for the discrepancy between hourly and annual pay. Unlike the national data, the data on a regional level does not include an overwhelming amount of demographic information. No information is available on age, race/ethnic composition, or marital status. However, the data compiled over the past four years by CEOWork’s indicated that a greater number of males than females are placed through this agency. This should not be looked at as a deviation from the national norm since CEOWork’s services a very narrow sector of individuals. Additionally, the data reveals that the majority of placements are made in construction or industrial industries.xv More specifically, the most popular fields of employment in the Buffalo region are demolition, clean up, factory work, and warehousing. 4 References i National Estimates Brach Staff, Current Employment Statistic Survey, Bureau of Labor Statistics (Feb. 7, 2014), http://www.bls.gov/web/empsit/ceshighlights.pdf ii National Estimates Branch Staff, The Employment Situation, Bureau of Labor Statistics (Jan. 1, 2014), http://www.bls.gov/news.release/pdf/empsit.pdf iii Data from ASA Quarterly Employment and Sales Survey, ASA (Jan. 1, 2013), https://www.americanstaffing.net/statistics/employment.cfm iv ibid v Nancy Hanover, 17 million temporary workers in America, World Socialist Web (Jul. 15, 2013), http://www.wsws.org/en/articles/2013/07/15/temp-j15.html vi Section 12, Labor Force/Employment and Earnings, U.S. Census Bureau (Jan. 1, 2012), http://www.census.gov/prod/2011pubs/12statab/labor.pdf vii ibid viii Section 12, Labor Force/Employment and Earnings, U.S. Census Bureau (Jan. 1, 2012), http://www.census.gov/prod/2011pubs/12statab/labor.pdf ix Marisa DiNatale Alternative Work Arrangements, Characteristics of and preferences for alternative work arrangements, Bureau of Labor Statistics (Mar. 1, 2001), http://www.bls.gov/opub/mlr/2001/03/art2full.pdf x ibid xi Regina Robo, Life and Work in a Temporary Job, Salary.com, http://www.salary.com/life-and-work-in-atemporary-job/ xii Data from ASA Employment and Sales Survey, ASA (Jan. 1, 2013), http://www.americanstaffing.net/statistics/staffingsurvey.cfm xiii Chris Isidore, Jobs are back! But the Pay Stinks, CNN Money (Jan. 21, 2011), http://money.cnn.com/2011/01/31/news/economy/low_wage_job_growth/ xiv xv Jeff Conrad, personal correspondence (Mar. 3, 2013). ibid 5