(Bloomberg) -- Temporary-help employment, often seen as an early indicator of shifts in the labor market and economy, dipped for the seventh consecutive month in August. 

The number of people employed at US temporary help services fell by 18,900 workers from a month earlier, continuing a downward trend, according to Bureau of Labor Statistics data released Friday. 

Historically, the industry has been a harbinger of where the labor market is headed, with employers often adding temp workers before adding full-time staff when demand picks up, and shedding them sooner when business slumps.

However, it’s been less reliable as an indicator recently. 

The US labor market has been resilient lately, with nonfarm payrolls rising by 187,000 last month, more than the consensus forecast of economists surveyed by Bloomberg, though every month this year payrolls have subsequently been revised down after the initial release. Still, while unemployment rose to 3.8%, the level is low historically and partly reflects an increase in participation.

Some of the US’s largest staffing agencies told Bloomberg recently they see even odds the country can avoid a recession, while American Staffing Association Chief Executive Officer Richard Wahlquist said, “From what we’re seeing right now, it looks like a soft landing for the economy.”

 

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