Labor market lessons from Georgia's temp workers

EconSouth, Summer, 2004

Table 1

Average Percent Change in Employment in Georgia
During Expansion and Recession

                                   Temporary help services (THS)

                                     Expansion        Recession
                                   1992Q2-2000Q4    2001Q1-2001Q4

Job destruction from firms              9.9              6.1
  shutting down
Job destruction from firms             11.0             22.8
  contracting employment
Job creation from firms opening        11.1              6.7
Job creation from firms                22.6             13.6
  expanding employment
Percent change in employment            3.2             -2.4
  (quarter to quarter)

                                      Private, nonagricultural
                                     total employment minus THS

                                     Expansion        Recession
                                   1992Q2-2000Q4    2001Q1-2001Q4

Job destruction from firms              4.5              4.5
  shutting down
Job destruction from firms              7.6              9.9
  contracting employment
Job creation from firms opening         4.4              4.8
Job creation from firms                11.1              9.0
  expanding employment
Percent change in employment            0.9             -0.7
  (quarter to quarter)

Source: Author's calculations using data from the Georgia
Department of Labor

Table 2
The Employment Experience of Georgia Workers
During 2000Q1-2002Q4

                                               Workers in
                                                temporary    Workers
                                                  help       in manu-
                                                services     facturing

Percent employed in 2002Q4                          63.6         80.1
Percent employed by the same firm
in 2000Q1 and 2002Q4                                25.0         68.8
Percent employed by a different firm                75.0         31.2
  Percent employed in the same 4-digit SIC          15.0         16.5
  Percent employed in the same 2-digit SIC           9.1          5.4
  Percent employed in the same 1-digit SIC          17.3         16.2
  Percent employed in a different 1-digit SIC       41.4         61.9
Average number of quarters unemployed
between 2000Q1 and 2002Q4                            2.3          1.1
Average annualized earnings in dollars
in 2000Q1                                         27,126       39,347
Average percent change in earnings between
2000Q1 and 2002Q4 (for those employed
in 2002Q4)                                           2.2         -2.2
Number of workers employed in 2000Q1              34,766      465,782

                                                 Workers     Workers
                                                in retail    in other
                                                  trade      services

Percent employed in 2002Q4                          73.9         78.6
Percent employed by the same firm
in 2000Q1 and 2002Q4                                55.1         64.2
Percent employed by a different firm                44.9         35.8
  Percent employed in the same 4-digit SIC          24.8         21.5
  Percent employed in the same 2-digit SIC           3.0         13.2
  Percent employed in the same 1-digit SIC          19.5         16.8
  Percent employed in a different 1-digit SIC       47.3         48.5
Average number of quarters unemployed
between 2000Q1 and 2002Q4                            1.5          1.2
Average annualized earnings in dollars
in 2000Q1                                         22,668       44,185
Average percent change in earnings between
2000Q1 and 2002Q4 (for those employed
in 2002Q4)                                           6.9          5.2
Number of workers employed in 2000Q1             398,449      943,348

Notes: All workers included in this table were employed in Georgia in
three consecutive quarters (1999Q4, 2000Q1, and 2000Q2) by the same
employer, and the workers' status was tracked through the recession to
2002Q4. SIC refers to the Census Bureau's standard industrial
classification; details of the classifications can be found at
<www.census.gov/epcd/www/naiestab.htm>. The other services category
includes workers in wholesale trade; finance, insurance, and real
estate; and other services.

Source: Author's calculations using data from the Georgia Department
of Labor

Chart 2

Percent Change in Earnings Between 2000Q1
and 2002Q4 of Georgia Workers Employed
with Same and New Firm

                           Employed by    Employed by
                            same firm      new firm

Temporary help services       -0.6            3.1
Manufacturing                  4.4          -16.7
Retail trade                   7.1            6.6
Other service                  9.6           -2.7

Source: Author calculation using data from the Georgia Department
of Labor

Note: Table made from bar graph.