Is it conservative to attack a business segment that provides a perceived necessary service? It is in my opinion when such services get in the way of allowing labor economics & economics on the whole to play out the way it should.
More & more companies are turning to employee temp agencies to fill positions. In this way, these companies don’t have to worry about actually doing the hard work of advertising for positions & interviewing – the temp agency does it for them.
However, despite temp agencies “finding people jobs”, these agencies are actually hurting workers & the economy at large.
You see, when you are a “temp”, these agencies get a cut of your pay. Recently, I talked with a temp worker at a local factory & he told me after everything was said & done, he takes home up to $3.10 LESS an hour once the modern day slave traders take their cut.
In essence, temp agencies are nothing more than legalized pimps. Seriously. What’s the difference between someone pimping prostitutes & taking their “cut” & a temp agency taking their “cut”. Nothing.
So how does this affect labor economics & the economy as a whole?
In some cities, such as mine, the unemployment rate is at about 5.6% which means by all measurable standards, our city has reached “full employment”. “Full employment” is just a fancy way of saying that most of those unemployed are unemployed for a reason whether because of their backgrounds or lifestyles (ie. drugs) or because they have chosen to remain unemployed for whatever reason. A slim minority of that “full employment” are people actively pursuing a job but cannot find one.
When unemployment is that low & the labor pool is that low, it would mean that wages would have begin to rise in order to retain current employees – since employees can actively look know there are more jobs than people to fill those jobs. It would also mean that wages would have to rise in order for these companies to attract new employees & keep them from going to other companies instead. How does this happen? Because labor & wages work on the same principle as any goods & services – supply & demand. The greater the demand, with less supply means prices goes up. Scarcity. In the same way, scarcity in labor means prices (wages) should go up as well as demand is high while supply is low.
Unfortunately, the temp agencies get in the way of any possible wage increases because they step in front of any negotiating power that a current or prospective employee might have with an employer. Companies just call up a temp agency & order new employees like ordering any other goods they order to conduct business. No need for an increase in wages. Plus, after 90 days companies can release these temps just to bring them back again for 90 days, never to be hired full-time. I knew a guy that worked at a factory for 7 years without being hired full-time. He probably would have continued working as a temp if he was still alive today.
On the whole, if the temp agencies are taking money off the top from an employee’s wages that’s less money to be spent buying goods & services. In the long run, that’s bad for the economy. For instance, I talked with another temp worker at a local factory who quit after 2 days because he realized that after the pimps took their cut, he was taking home less than minimum wage an hour.
Temp agencies also create a problem that many have failed to recognize. Low wages & no job security. What clarion call does that speak to? The unions. I am amazed that unionization hasn’t taken hold in more factories & other job sites as the use of temporary workers has exploded across the nation. Yet we sit back & allow temp agency pimps & slave masters push harder & harder against our workers. Most of us reading this site don’t want any further encroachment by unions into the workforce – public or private – yet we stand by & allow the wages of workers deteriorate by temp services?
I, for one, have decided enough is enough. I talked with our Economic Development Director at my city & I asked him – and received a positive, affirmative response – to write into any new economic development agreement from here on out that NO TEMP SERVICE can be used in the employment of workers in the creation or retention of jobs at their facilities.
Do the math. If just one temp agency had 300 workers out slaving for them & this temp agency is taking their pimp cut, how much money are they making on the backs of hard working Americans every given day/week?