I got my job through a temp agency. The company I work for prefers to hire employees through temp-to-hire positions, unless they are highly skilled. As I had just graduated from college when I got this job, I definitely did not qualify as highly skilled.
Basically, they hired temporary employees to see how they worked out. If there was an issue, it was easy for them to get rid of the employee without going through a lot of hassle, and I had worked there on a temporary basis for four months when they finally hired me, so I didn't have any probationary period without health insurance or anything. Win/win situation for good workers as far as I'm concerned.
Yes, this is a difficult job market, but I would think that temporary positions would be where companies are hiring if they are hiring at all. It is a lower risk way to fill openings.