Some observers have attributed the dramatic growth in temporary employment
that occurred in the United States during the 1980s to increased participation
in the workforce by certain groups, such as first-time or reentering workers,
who supposedly prefer such arrangements. However, statistical analyses reveal
that demographic changes in the workforce did not correlate with variations in
the total number of temporary workers. Instead, these analyses suggest
that factors affecting employers account for the rise in temporary employment.
One factor is product demand: temporary employment is favored by employers
who are adapting to fluctuating demand for products while at the same time
seeking to reduce overall labor costs. Another factor is labor’s reduced
bargaining strength, which allows employers more control over the terms of
employment. Given the analyses, which reveal that growth in temporary
employment now far exceeds the level explainable by recent workforce entry
rates of groups said to prefer temporary jobs, firms should be discouraged from
creating excessive numbers of temporary positions. Government policymakers
should consider mandating benefit coverage for temporary employees,
promoting pay equity between temporary and permanent workers, assisting
labor unions in organizing temporary workers, and encouraging firms to assign
temporary jobs primarily to employees who explicitly indicate that preference.