Bad economy causes unemployed to turn to temp agencies

By JOHN BACHMANN

Finding a job is not getting any easier with the unemployment rate rising.

Associate economics professor Carl Campbell said the unemployment rate reached 7.2 percent in December which is the highest it has been in almost 16 years.

He said because of this higher rate he expects more people to be turning to temp agencies for jobs.

“With more people being unemployed, people are more likely to go to temp agencies as an option to find any job available,” Campbell said.

Jean Symonds, branch manager of Furst Staffing Services, 3218 Sycamore Road, said she has seen more people looking for jobs.

“About the last three months we have received more people coming in here,” Symonds said.

Symonds attributes the increase of people to the rise in layoffs.

“A lot of companies are laying people off,” she said, “making it harder for those who are unemployed to find a job.”

Campbell said a larger unemployment rate has its effects on the economy.

“Job losses create a smaller demand for goods and services affecting other companies,” Campbell said.

He also noted that this will, in turn, cause even more layoffs.

“These companies have no point in keeping as many of their workers because they’re seeing a loss in their profits,” Campbell said.

Campbell also said there are some things the government could do to help lower the unemployment rate.

“The Federal rate could lower its interest rates to get companies to spend more,” he said. “Another option is cutting taxes which would get companies to spend more on infrastructure.”

However, he foresees the unemployment rate getting worse before it will get better.

“It is probably going to rise further as of right now with the current state of the economy,” Campbell said.