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The -- bottom line of temporary jobs.
They're becoming a permanent way of life for so many people out there in fact the second largest employer in the country.
In the country -- temp agency Kelly Services.
It comes right after Wal-Mart on the list which itself is that heavy user temporary workers.
But what holds more weight now in our economy the quality of jobs or the quantity of jobs here to weigh in.
Peter -- -- economics professor at the University of Maryland and Bob.
-- -- the -- the CEO of -- walking company helping businesses hire temporary workers Bob -- pronounce your last name correctly.
You got it exactly right I love that OK Peter -- the start with you because I find this trend disturbing.
The idea that the second biggest employer in the country is a temporary services agency says to me that there's something deeply wrong with this economy what does that tell you.
Well certainly we're creating many more temporary jobs -- permanent jobs these days they don't support a family they don't even support an individual and it stems from -- -- late.
What -- -- lousy jobs market.
And they know health care law which encourages employers to take.
Two jobs and -- -- -- break so they can avoid paying benefits -- put out the mandate benefit costs are skyrocketing.
So avoid the story.
Just -- the part time.
Well you know no benefits no 401K and in the list goes on and not you say that can support an individual let alone a family.
-- your entire business model is built around very intelligently so supplying temporary workers to businesses.
Why do you think this is not threatening to our economy this trend.
Well for so while I agree with you temporary work forces have been growing faster than the economy -- five times faster than the economy.
And for many businesses it's the temporary workforce is becoming permanent.
But I think it's a double edged sword while at the same time businesses look to cut costs.
The business that category of jobs that fall under this temporary.
Rubric is growing so it's no longer just the cashier Wal-Mart but yet temporary lawyers accountants technicians software developers.
How would businesses are looking to do is to have flexibility.
In terms of our cost structure and that's what we're seeing in some of the numbers that are happening.
You know you're flexibility though -- my pain in the but -- I you know I find this so disturbing now 12% of workers -- temporary workers.
Let's get back to my question of quality vs quantity which would you choose in this scenario more.
Permanent -- workers more permanent jobs are more temporary workers Peter.
What we clearly want more permanent jobs -- we're creating that's not to denigrate the importance and usefulness of temporary work.
For a way of getting started at a new job or a new area.
Or for filling in from here to there but most people long term have to have a permanent job.
Even if it's not as -- employee but as a consultant but there's a commitment for 4050 hours a week.
There's a lot of that in the legal sector a lot of big law firms have that.
It's really necessary you simply can't make ends meet long term if they don't -- -- the benefits of temporary work.
But it is very disturbing that we're creating so few permanent jobs when asked.
They ask why.
Why it's a great question well let's ask Bob why are we can it -- You know developing so many of these temporary workers is there something special about this economy this you know post.
-- Great Depression Great Recession economy that that means companies are just unwilling to commit.
To full time.
-- -- That that's exactly right I think after 2000 debt 72008.
What's happened is business as a gun -- and they need the resources they need to talents.
But they're unwilling to -- that into their cost structure see -- seeing this impact.
Increasing penetration of about temporary workforce is more than ever.
You know I thought this was interesting Peter there's a recent survey of economists that shows that three quarters of them believe that this trend is permanent.
Still economists even people you may regard the creation of temporary jobs is a good think -- it's a job after all say this is becoming.
A permanent link to something New York hot -- what kinds of long term impacts will their beef from that.
Well for one thing people won't be able to prepare adequately for their old age working on a temporary basis having multiple part time jobs things of that nature.
People won't say very much they don't save enough as it is they certainly won't build up pension benefits would employees -- -- key of those things of that nature.
So we're gonna have an elderly population that is wholly -- prepared I predict is going to be a big push.
For an expansion of what we know what Social Security a broader tax base higher rates and so forth simply to provide -- Fact you're ready for these people and that's exactly this could end up costing us in more taxes and more government.
And I don't know whether that's good for any part of the private sector all.
Peter I'm sorry Bob one of the big questions out there you know you always hear that temporary work.
Ultimately creates full time jobs you move from temporary work into some kind of full time position is there any indication that these jobs being created right now will blossom.
Into a full time position.
So I think it's too interesting statistics that 57% of US employers say they hire temporary as a way to get.
Full time permanent positions that's a number four -- cited reason.
Second is global statistics show that Colquitt said of unemployed who do participate in the temporary workforce.
Up over twelve month period have a lower unemployment rate.
So it is definitely a gateway.
Of course you don't want the temporary workforce -- overwhelmed the growth.
Permanent workforce is -- and that's of this -- what's happening today is.
We seeing temporary workforce is grow at five times the rate.
Of the economy so that a -- disproportionate move that's happening.
Well -- -- after all Peter I have to ask you about something that's a little tangentially related and it's a little different.
We've got and this is these -- numbers that astonish me today so I just had to ask you about them we have more Americans on food stamps.
More Americans on food stamps than we do in the private sector working.
Take a look at these numbers a 101 million people on you know food stamps.
97 million working full time what does that say about our economy.
Well two things are going on there one is that the economy is creating a lot of low wage jobs so people can find some work.
But yet not enough hours and they qualify for food stamp -- are not -- high enough wage and they were.
They qualify for food -- along with -- their kids.
The other is the states have been actively recruiting people to sign up for food stamps people that might not be inclined because of pride -- they have some of -- way of getting along.
Because it brings money into communities you know in the current -- to.
Absolutely the federal government sends money to a rural community where there's a lot of potentially eligible people in the form of new food stamps.
And that promotes the grocery store -- other grocery industry wants people to sign up and they do it through.
-- local governments and nonprofits of local governments bring in to try to get people organize -- into the program.
Well the beat goes on and we have to get some better job than here in the meantime -- Bob thanks for coming on a great conversation thank you.
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