Analyst: Loss of temp jobs 'less worse' in Oct.

HARTFORD, Conn. (AP) — Analyst Jeffrey Silber of BMO Capital Markets on Friday said the loss of temporary jobs was "less worse" in October, down 19.4 percent, than in September when the number of temp jobs was down 22.5 percent.

Silber's comments came as the U.S. Labor Department reported that unemployment in October passed the 10 percent mark for the first time in more than 25 years.

In a research report, Silber noted that temporary jobs as a percentage of the total work force increased to 1.4 percent and "appears to have bottomed" in July at about 1.3 percent.

"This is a positive, in our view, as the this metric bottoming typically correlates to the end of a recession," he said.

The U.S. Labor Department on Friday said unemployment in October jumped to 10.2 percent from 9.8 percent, the highest since 1983. The economy shed a net total of 190,000 jobs in October, with total unemployment at nearly 16 million people.

The average work week was unchanged at 33 hours, a disappointment because employers are expected to add more hours for current workers before they begin hiring new ones.

"We believe this metric needs to rebound before a meaningful increase in temporary staffing volume begins," Silber said.

In morning trading, shares of staffing company Robert Half International fell 38 cents to $23.82. Manpower Inc. slid $1.04, or 2.1 percent, to $48.54. Kelly Services Inc. lost 29 cents, or 2.4 percent, to $11.62.