Final answer:
Employers value temporary workers mainly for their ability to offer flexibility, allowing companies to adjust quickly to workload variations without long-term commitments. Temp agencies aid in reducing frictional unemployment by serving as clearinghouses for job opportunities, assisting workers in finding both temporary and potential permanent employment.
Step-by-step explanation:
Employers often prefer to rely on temporary workers because they offer flexibility. Temporary workers, as provided by temp agencies, are a dynamic solution for companies looking to fill immediate labor needs without committing to long-term employment contracts. Furthermore, the use of temporary workers can be a strategic approach for handling project-based work, seasonal peaks in demand, or staffing shortages due to unexpected absences.
The growth of the temp worker industry has been linked to a reduction in the natural rate of unemployment. Temp agencies act as intermediaries that connect workers with companies, offering both sides a degree of flexibility. They serve as a clearinghouse for employment opportunities, often giving workers a chance to gain experience and access to permanent job opportunities they might not find on their own. This process can decrease frictional unemployment by facilitating quicker transitions from job to job.
For employers, temporary workers are appealing because they don't require the same investment as permanent staff in terms of extensive training or long-term commitments, and they aren't typically expected to possess highly specialized skills. The temp worker strategy allows employers to adapt to varying workloads and business needs efficiently.