Temp Workers

Not that long ago, people studying the U.S. labor market were concerned about the number of permanent jobs being filled by temporary workers. Today, however, much of that angst has been overshadowed by the headlines about U.S. jobs moving overseas. Though the debate has shifted away from temporary workers, temporary employment continues to play a vital role in the functioning of the labor market and in foretelling its movements.

Interest in the temporary workforce—which represents a relatively small sector of the labor market—began to rise in the mid-1980s as the share of temporary workers in the labor force began to increase. In 1985, workers in the temporary help services industry (the U.S. Census Bureau classification for temporary workers) accounted for less than 1 percent of overall nonagricultural, private employment in the United States. By 2003, employment in this sector had grown to 2.1 percent of total U.S. employment. This doubling of temporary workers’ employment share is significant and is higher than growth in other areas, including computer system design services and business support services, two areas typically viewed as having grown significantly recently.

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