Employment growth in the temporary help supply industry

During the 1980s, a significant increase occurred in the employment of temporary workers - employees hired for a specific task and for a limited duration - because of changing economic conditions that raised both the demand for and supply of temporary workers. Using time-series data, we investigate the factors that influenced temporary employment growth by analyzing the expansion in the temporary help supply (THS) industry On the demand side, increasing aggregate output and heightened foreign competition were the most important factors that encouraged firms to hive temporary workers. On the supply side, increasing participation of certain demographic groups, notably married women, shifted the supply curve of temporary workers outward.