ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Employment Agencies: The Seventy-Five Percent Solution?

Updated on January 29, 2011
More jobs?  Not really.
More jobs? Not really.

In today’s misleading figures category, recent reports indicate there has been some modest growth in the number of new jobs in America. That’s good. When one drills into the numbers, however, it becomes apparent that while jobs have been added, many of these positions are with employment agencies. And, that’s bad.

Why? Across America, many corporations are creating employment agencies for the sole purpose of “on-boarding” personnel at substantially less cost. When one factors in the reduced cost to the company for benefits, which in some cases are virtually non-existent, the actual savings per “head” could be close to 40%.

Case in point: Cara is an accountant with XYZ Corp. With 12 years tenure, her salary is in the low fifties, and she enjoys a liberal benefits package. That all changes when Cara and many of her colleagues are “down-sized”. Cara signs up for unemployment compensation and registers with several job boards. Among the jobs listed, she sees an opening for an accountant with a company called Labor Flux, which it turns out, is a wholly-owned subsidiary of XYZ Corp. Cara applies, is offered the position, and within a week is back at her old desk, doing the same job as before. At 75% of what she was making previously. And, with few benefits. No holiday pay, no sick leave, no matching 401K contributions.

It gets worse. Aside from the smaller paycheck and benefits package, many of these positions “offer” the following:

* On-call status; one must call in every morning to determine if they’re to report that day. No work, no money.

* Fewer and smaller salary increases.

* Little or no opportunity for advancement.

* Some of these positions are considered contractor status, which means no access to unemployment compensation and other employee rights afforded full-time workers. Also, it’s much easier to “fire” an employee that was never legally an employee.

When the Bureau of Labor Statistics reports new jobs, maybe they should only count these as 75% of a job, because in reality, that’s what they are; same job, three-quarters pay.

For those who’ve been unemployed for some time, these “almost jobs” could be a stepping stone to better things. So, take it. Use it. Learn from it, and parlay it into something better.


    0 of 8192 characters used
    Post Comment

    No comments yet.


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)