John Lott recently published a post on Fox News blog about the recovery. He claims that this is the “first entirely temporary help service job recovery ever in our country’s history. True. It is as I was in this industry the last “recession”.
According to him 460,000 jobs were added by this industry. His explanation is uncertainty. Employers aren’t hiring except thru services. We’ve spoken of this before. This is true. Employers are not yet secure and comfortable with their orders, manufacturing or customer base as yet so for them to directly hire on new employees risks all of their payroll liabilities beginning with unemployment taxes.
For those employers who had to lay off to survive, they now find themselves being penalty rated by the State of Ohio for adding to the unemployment burden. Higher payroll taxes for them squeezes any potential hope for adding more people, giving raises or contributing more to their health benefits. So they turn to staffing companies to help offset their risk liabilities and tax burdens.
But what angers me the most about Mr. Lott’s viewpoint is not his blaming of our President because “he created much of today’s unemployment by moving around trillions of dollars in the economy and moving around the jobs that are associated with that money ” even though much of Ohio’s manufacturing base has folded completely because of the financial catalyst that almost brought our country to it’s knees by no longer supporting such bases.
I know our economic situation began long before this President was sworn in. I don’t understand how he can forget that.
But what really irks me is his ignorance on “temporary” jobs. Has he any clue that they most always lead to permanent jobs? Does he even have a clue that the staffing company’s are basically the only ones supporting this country’s businesses? Banks aren’t.
Does he think they pay their invoice (which reflects the hourly wage, payroll taxes and liabilities of the candidate) upon receipt? If they have a financial crunch it’s the service who is the one to wait…and their interest is hardly what a bank would charge.
Has he no clue that in these “uncertain” times temporary help services are actually supporting while protecting Ohio’s employers from additional payroll risks by taking on the burden of unemployment, payroll taxes and workers’ compensation?
No! He only sees what he wants to see like the word “temporary”. As he shoots his mouth off against “no real” jobs he’s attacking the same group of entities that are the only friends small business has in this economy for all others turned their banks on them from their own fear of uncertainty.
But Champion Personnel System and others continue to find quality, well paid, job opportunities for the unemployed that will become PERMANENT. Our terms to hire are short but sometimes the client is so uncertain they need a little more time to feel comfortable before they hire, but they’ve found the one they want when they do! Employers need support. They ARE hiring for permanent positions. They are bringing them in first on temporary bases not because they don’t want them on their team but because they too are uncertain, need a bit of financial help and want to protect their liabilities until they feel strong again.
Insinuating there are no real jobs out there sounds a bit like biting the hand that feeds. It is the staffing industry (according to Mr. Lott, the Temporary Help Services) that is the backbone of any recovery we will see… that’s not bad, that’s not good….it is what it is. We, those of us in the staffing industry, happen to be the only friend business has these days!