The Bureau of Labor Statistics released its employment numbers today - a drop from 10% in December to a 9.7% unemployment rate in January.  A large section of the increase in jobs came from temporary and contract workers sector, which added 52,000 jobs last month.  Factories added 11,000 workers, their first increase since January 2007 and biggest increase since April 2006.  However, the factories increase was largely due to an increase in temporary workers.

Manufacturing may lead the labor-market rebound as it brings in workers to push inventory levels up to a balance, but an increase in temporary workers is not all positive news.  The firms’ decision to take on temporary workers, instead of more permanent ones, is a clear tell on their hand - they don’t have confidence in the future.  Although, it is likely factories will continue to take on workers to approach normal inventory levels, pullbacks are still possible.  If the firms thought it was likely that they would have a continued need for these workers, meaning demand would continue steadily, then they would’ve taken on permanent employees.

President Obama stated this morning, ”These numbers, while positive, are a cause for hope, but not celebration, because far too many of our neighbors and friends and family are still out of work.”  He added the numbers were also likely to fluctuate - touching on the same thought manufacturing firms have, a lack of stability.