UF study: Temp jobs not a dead end

South Florida Business Journal

Those temp-to-perm jobs may not be so bad, after all.

In fact, a new University of Florida study finds that those hired by temporary agencies actually earn higher hourly wages and are better educated than permanent employees.

“There has been concern by some advocacy groups that the temporary help industry is creating an entire class of people who are churning through temporary-help jobs and can’t escape from that cycle,” said Sarah Hamersma, a UF economist and lead author, in a news release. “We find no reason to believe that a large number of temp workers are ‘stuck’ in a secondary labor market.”

Hamersma and Carolyn Heinrich, a University of Wisconsin public affairs professor, studied occupational records, wages and earnings for 5,877 Wisconsin workers between 1995 and 2004.

Of the 3,964 employees who held at least one temporary job, 3,947 held a permanent job at some time in those 10 years, the study found. Further analysis found that, of those who changed jobs over a four-month period, more than three-fourths of those in temporary positions moved into traditional jobs, while only 23 percent took another temporary job.

The study also found temporary workers received about 15 percent more pay than those in traditional positions. The study suggests they are paid more because job conditions are less desirable.

“Paying temp workers more is consistent with having to handle the insecurity and other characteristics that are inferior to a regular job,” Hamersma said in the news release.

One of the biggest drawbacks of temporary work is its short duration, which makes it difficult for employees to build a foundation of experience necessary for job security, Hamersma said.

More than half of all temporary jobs in the sample – 56 percent – lasted no more than three months, and an additional 25 percent lasted no more than six months, she said.

“While I was surprised at how short those jobs were, what was even more surprising is that 45 percent of non-temporary jobs lasted less than three months,” she said. “Unfortunately, we don’t know why – whether workers quit or were fired, got sick or had child care issues.”