As the government tries to coral people, people react to realities. Filling employment needs with temporary workers, to avoid the unknowns of health care costs. Hah, the people are always smarter and quicker acting than the ponderous behemoth Obowma government.
The explanation behind temporary job creation is pretty simple: uncertainty. Companies don’t want to make longer-term commitments if they don’t know what the next couple of years will look like. New regulations are being imposed on companies, be it health care, finance, the environment, and the other areas. And the exact form and extent of these regulations still have to be determined by regulators. Many small companies don’t even know what tax rates they will face after the beginning of the year. Neither the president nor the Democratically controlled congress attempted to prevent income tax rates from rising for even the middle class until just a few weeks before they were expected to rise.
President Obama’s stimulus and regulations have 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. People haven’t instantly moved from one job to another.
A temp job recovery, because these contract workers can be dismissed at any time, with no costs.