Companies Cut Temp Workers in Warning Sign for Labor Market

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Employers are shedding temporary workers at a fast rate, a sign that broader job losses could be on the horizon

Employment through staffing firms has fallen for five straight months; similar pullbacks have preceded recent recessions

As interest rates rise and companies tighten their belts, white-collar workers have taken the brunt of layoffs and job cuts, breaking with the usual pattern leading into a downturn. WSJ explains why many professionals are getting the pink slip first. Illustration: Adele Morgan. In the last five months of 2022, employers cut 110,800 temp workers, including 35,000 in December, the largest monthly drop since early 2021. Many economists view the sector as an early indicator of future labor-market shifts.

 

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