Hey President Obama, temporary workers can save the economy!

Posted by: Matt Rivera

OK, maybe save is too strong of a word to use, but temporary workers certainly cannot hurt. On Thursday, the White House hosted a jobs summit to listen to new ideas for creating jobs. Well, I have an idea. Encourage businesses to hire more temporary workers to get things moving. While at first this might seem a bit self-serving, I think there are some sound reasons why it can really work. Here’s why:

• Jobs: Sure, this sounds obvious. But in addition to the temporary workers who would actually be filling the jobs, it would also require more recruiters and staffing company employees to fill those jobs and administer benefits to the workers. This activity also fuels growth and jobs in the applicant tracking industry, job boards, newspapers, and background check companies, just to name a few. And all of these workers need food, banking, electricity, gas, and other services to get to and from their jobs and be productive.
• Production: Companies can get the workers they need to spur production without the long-term costs of full-time employees. Temporary workers don’t drive up benefits costs, and they don’t increase the burden on human resources. They can be used for short-term production cycles or to finish projects that were put on hold. Employers might even find some great talent to hire when things do start picking up.
• Taxes: Staffing companies pay state and local employment taxes, like any other employer. More workers mean more taxes and spending. States should especially jump on this bandwagon. They stand to gain the most in the short term. From income tax and gross receipts, to plain old sales taxes, even a small increase will have a great local impact.

So while I might not be the world’s foremost economist — I guess my invitation to the summit was lost in the mail — I think the ideas presented above have some merit. And I’m willing to bet that more than a few companies who are struggling to get products out, or new products created, and people who are currently without a job, might agree with me.