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Thanks so much -- -- call one of the reason for that today market rally that Friday's jobs report the overall number came in better than expected.
But one area that's troubling.
Is exploding still temporary -- workers.
That number of temporary workers in this country is -- -- -- 50% in the last four years and what to make of that for our future joining us now from Stamford Connecticut Michelle Girard senior economist at RBS.
Michelle always a pleasure to see hey Megyn how are you -- this change and the fact that more more companies are using temporary workers are we going to see stubbornly high unemployment.
Well a couple things first of -- I.
Sir I think that that big trend in the hiring a temporary workers has really changed all that much com.
The pace hiring of temporary workers now looks very similar to what we saw.
Any expansions on the in the late nineties also little the last expansion that we had in the mid you know 20042005.
-- that 50% increase isn't just reflective of the fact that.
Hiring has picked up and of course early in the recovery there was more emphasis on tap -- -- -- that hasn't been the story I actually think.
Part time workers on -- that a full time workers as perhaps a bigger trend that has emerged.
In terms of getting the overall unemployment rate down it is the Fed.
At this point powerless to do that do you think that the Fed's activities are having a major impact still on bringing unemployment down.
Now -- I don't really think the feds -- actions that had all that much on to do with.
With bringing employment down at all in this sense I mean I guess on the march -- On the it's helped to keep equity prices -- -- an asset prices it's probably contributed a bit.
Recovery although a lot of that I think is also reflected just that.
The turnaround in the economy growth has not really picked up nor has the pace of being picked up.
Even though the Fed has undergone this you know expansion of its balance -- so -- I think it comes down to.
What companies think about the future and they're still pretty cautious which is why the pace of hiring is still.
Kind of disappointing result better -- recent months but still not -- -- -- like.
See it into longer term interest rates have gone -- just with the idea that the Federal Reserve will reduce town how much is buying in bonds every month can this economy handle that -- I don't wanna call it a rate spike but it's pretty doggone close.
-- well that it's surely something that we are watching other thing I'll say is that.
Prior expansions this is not really been an expansion that was fueled by.
Lower interest rates and normally the Fed cuts interest rates that into sensitive sectors of the economy like housing and -- take off I mean that's happening now that it was really kind of slow.
Ticket and really tough you know until the economy it's got going and it is why aren't getting jobs.
But I think we're going to be OK I I don't think this backup in rates.
Really what's that the economy at risk now again our expectation is also we're not gonna see rates rise a lot further from their -- at painful levels.
I don't think it's going to have a significantly dampening impact that it had and grow great to see in the show again great and bail out there and sees him.
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