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Adecco chief sees lag in permanent hires

Many U.S. companies have stretched their workforces to the limits of productivity -- yet they're still not inclined to make permanent hires,  a temp agency executive said in a published report.

Cautious employers may keep relying on temporary employees,Tig Gilliam, head of North American operations for Adecco SA, a temporary staffing agency with a major presence on Long Island, said in an interview published Monday in The Wall Street Journal.

After waves of workforce reductions through layoffs in recent years, Gilliam said, he expects a continued lag in permanent hiring because employers "don't want to go through the layoffs again."

Adecco has offices in Garden City, Melville, Edgewood and Bohemia.

Though an upsurge in temporary hiring often signals a trend toward permanent hires, that pattern might not take hold in the current economic climate, Gilliam said.

"Companies have been able to get to levels of productivity with the staff they had that they didn't expect, and they're looking to rely more on flexible resources than permanent," he said.

The strongest segment for temporary hiring is in engineering, "health care has been great through the whole recession. And IT generally has been very good. Finance is the next one," Gilliam said.

The Wall Street Journal article is titled Adecco Expects Temps Are Here to Stay as Hiring Revives

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