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November 20, 2009

More states add jobs, but many for temporary staff

WASHINGTON (AP) — In a sharp improvement, more than half of U.S. states added jobs in October. But economists say many of the gains likely occurred in temporary employment.

That's customarily a positive a sign. Employers usually hire temporary workers before they add full-time jobs. But in this case, the temporary hiring may be inflated by the auto sector. That's boosted production to replace depleted inventories. As a result, the increase might not be sustainable.

Some of last month's job gains also were in sectors such as education, health care and government, which have fared relatively well during the recession. By contrast, there's little evidence that companies in hard-hit industries are hiring full-time staff.

Overall, 28 states added jobs in October. That's up from only seven in September and eight in August. The think tank Economic Policy Institute says it's also the largest number to record increases since 33 states did so in February 2008.

Texas added 41,700 jobs, increasing its total payrolls for only the second time in the past year. Its unemployment rate edged up to 8.3 percent from 8.2 percent. Most of Texas' gains were in education, health care and government.

The national unemployment rate jumped to 10.2 percent in October, the highest in 26 years, from 9.8 percent in September.

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