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An interesting article from Business Week

Now Hiring: Contract Workers?

May data show employers are hanging on to contract workers since they remain wary of bringing on full-timers
By Prashant Gopal

The good news for unemployed Americans is that companies seem poised to begin hiring. The bad news is that these are likely to be temporary jobs, often without health care and other benefits.

In a recession, contract workers are often the first to go. But often, they’re the first to be hired back, because in an uncertain environment, employers want to be flexible.

“I think it’s coming,” said Gary Chaison, professor of industrial relations at Clark University in Worcester, Mass. “We might be at the trough of the recession, and we might be heading into a time of large-scale hiring of contract workers.”

Since November, employers—reacting to the economic meltdown—have been shedding temporary workers at an alarming pace. The number of U.S. temporary help services workers dropped by 90,000 in November (on a seasonally adjusted basis) and fell by more than 70,000 every month until March, when the reductions suddenly began to slow, according to the Bureau of Labor Statistics. In April, 55,000 temp workers were cut. But in May, the number of temp workers fell by only 6,500.

For the full article go to http://www.businessweek.com/managing/content/jun2009/ca20090630_912379.htm