Why the Growth of Temp Worker Industry is a Serious Problem for Millions of Americans

by Nomad

California legislators have finally taken steps to tackle a serious labor problem that has held low income workers back from finding long term employment. The often exploitative practice of hiring outsourced temporary staff in place of employees may now- finally- be coming under closer scrutiny.

For decades now, one closely-held secret by US companies was how often and to what degree temporary workers, or temps, could be used to circumvent federal laws regarding labor rights. For the honest business owners, a temp could be a live saver in an emergency but to the less scrupulous, a temp is a worker primed for exploitation. 

The Perfect Victims?

Temps, by law, are cheaper to employ since they are paid on the lowest legal scale (receiving wages well below the standard for any regular employee that would work in the same position). In addition, temps do not qualify for overtime wages nor do they receive health insurance. Forget accumulated vacation time or even sick days. 

So why would anybody want to be a temp? The main reason is the most obvious one. In a word: Desperation.

Temp staff agencies are always hiring and for the desperate, any job- even a temp job- is better than nothing.

It is no coincidence that temporary work is now an industry unto itself, with an estimated 2.7 million workers—one of the fastest growing sectors in the economic “recovery.” That could be, some might say, only a sign of the level of desperation and an economic recovery based on temporary staffing is an illusionary one.  The temp worker rarely earns enough to boost any economy out of its doldrums.

The Full Time Deception

Another attraction is that temp companies say that temp workers can sometimes find full-time employment from a temporary position. Work hard and you will get a permanent position. This is the pitch (but not the actual promise) of temp agencies.

As journalist Michael Grabell for ProPublica explains:

Temps have worked for the same company for as long as 11 years, never getting hired on full-time. Companies have assigned temps to the most dangerous jobs. In several states, data showed that temps are three times more likely than regular workers to suffer amputations on the job. And even some of the country’s largest companies have relied on immigrant labor brokers and fly-by-night temp agencies that have cheated workers out of their wages.

As the economy slowly improved the number of temp jobs soared at a rate 10 times faster than private-sector employment as a whole.
Meanwhile,  the figures for full-time employment limped and hobbled along. That shouldn't come as a surprise. 

Corporate reliance on temp workers hurts all workers.

Across America, temporary work has become a mainstay of the economy, leading to the proliferation of what researchers have begun to call “temp towns.” They are often dense Latino neighborhoods teeming with temp agencies. Or they are cities where it has become nearly impossible even for whites and African-Americans with vocational training to find factory and warehouse work without first being directed to a temp firm.

In the end, it boils to hard cold business sense: why should an employer pay any more than absolutely necessary unless mandated by law? I

As we have heard so often, companies are not charities. They claim no social responsibilities. Today many employers feel no obligation to the welfare of their employees. And since temps are not actual employees of the firm, then they are even less of a concern.