There is also little recognition that temporary help firms play an important role as labor market intermediaries, matching firms and employees. Two Percent of Total Employment Employment growth in the temporary help industry has been rapid during the last two decades, averaging more than 10 percent annually, and expanding from 300,000 to 2.5 million between 1977 and 1997. During the same period, the total number of US jobs increased by 37 million. Employment growth in the temporary help industry is extremely volatile, growing rapidly during economic expansions, and falling sharply during recessions. The growth in temporary help industry employment may overstate the degree to which firms are actually increasing their use of temporary workers.
Many firms hire workers directly to perform temporary tasks, without using a temporary help firm.
Some estimates suggest that at least as many temporary workers are hired directly as through temporary help agencies. Bureau of Labor Statistics economist Ann Polivka finds that the apparent growth in the temporary help industry may be at least partly due to a shift away from firms' hiring workers for temporary positions directly, to using outside agencies to recruit, hire and train workers. For most workers, temporary employment does not last long. Moreover, the fact that some individuals spend extended periods working as temps should not necessarily be taken as an indication of a problem. 2 Preferences Many individuals choose temporary help work precisely because they want a regular job.