Companies rely on existing workers and temporary employees instead of hiring

Companies are relying on existing workers and temporary employees instead of hiring, evidence the European crisis is hurting U.S. confidence more than demand. The average workweek climbed by six minutes to 34.5 hours in June, the first gain since February, Labor Department figures showed today in Washington. Temporary staffing rose by 25,200, the third consecutive increase.

“Firms are still seeing an increase in demand, and there is a need for more labor,” said Nigel Gault, chief U.S. economist at IHS Global Insight in Lexington, Massachusetts. “But there are so many risks out there that businesses don’t want to commit to hiring full-time employees.”

Payrolls advanced by 80,000 workers in June, fewer than the median estimate of 100,000 in a Bloomberg News survey of economists, after a 77,000 rise the prior month, today’s report showed. The lack of hiring fueled concern the world’s largest economy was slowing, pushing stocks down, with the Standard & Poor’s 500 Index heading for its biggest weekly loss in a month. Read more >>