Thursday, March 22, 2012

America's new job paradigm: Temporary hiring replaces permanent employment

President Obama has been very quick to use the recent BLS reports on new jobs and unemployment claims to justify his economic initiatives are working, and creating jobs for Americans.  But when you dig just below the thin veneer of manipulated data models, you will find a new and disturbing trend.

A large portion of new job hires are for temporary positions at lower wages and without benefits.

…the rising jobs are purely a quantity over quality trade off, as every month more and more temp jobs take the place of permanent ones, especially those of former professionals from the FIRE sector. In fact, in January temp jobs soared by the most on record, and the total number of temp workers was just shy of all time highs. Ironically, as this happened, discretionary online retail companies have seen their stock price soar to record highs. One of the primary drivers for this has been the increased "efficiency" at these companies' hubs - their warehouses. Which just happen to be staffed with temp workers. - Zerohedge

The Warehouse is the new means of running am internet based business at the detriment of a Main Street brick and mortar complex.  Companies like Amazon and CompUSA run completely out of the internet, and vast warehouses that are filled with temporary employees working 32 or less hours.

This allows them to undercut their competition through labor costs and limited benefit programs, but not unlike the 'Sweatshop' models of China and other Asian producers.

This infograph by Business Insurance.org shows just how the 21st century sweatshop in America works, and why it has grown because of the failed job policies of the second half of GW Bush, and the entire term of Barack Obama.


Courtesy of businessinsurance.org

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