Replies to post #138825 on Traders of the Caribbean

[GuruTrader]

Ahead of the Bell: Staffing Sector
Analyst sees staffing sector recovering next year as US labor market improves
On Monday August 10, 2009, 8:43 am EDT
Buzz up! 0 Print.Companies:Manpower Inc.MPS Group Inc.Resources Connection Inc.
HARTFORD, Conn. (AP) -- Staffing companies will begin to recover next year as the U.S. labor market improves, an analyst said Monday.

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{"s" : "man,mps,recn,rhi,tbi","k" : "c10,l10,p20,t10","o" : "","j" : ""} "The July employment report was stronger than expected with an improvement in the average workweek and a strong increase in the factory workweek," Deutsche Bank analyst Paul Ginocchio said in a note to investors.

Temporary jobs did not rise month-over-month, Ginocchio said, though he believes they will likely increase in August.

In addition, year-over-year declines will "lessen considerably" in the next few months due to easier comparisons with last year and the improving economy, he said.

Most temporary staffing companies expect flat revenue until the first or second quarter of 2010, Ginocchio said.

Wall Street expects year-over-year declines at True Blue Inc. to continue until the second quarter of next year and reverse after the third quarter for MPS Group Inc.

Analysts expect improved revenue at Robert Half International Inc. and Manpower Inc. in the fourth quarter of 2010 and in early 2011 for Resources Connection Inc.

The Bureau of Labor Statistics reported Friday that in professional and business services, employment in the temporary help industry edged down in July, losing 844,000 jobs since the recession began. However, the declines have dropped "substantially" in the past three months, the agency said.

The Labor Department issued a stronger-than-expected monthly unemployment report Friday. Employers cut 247,000 jobs in July, fewer than the 320,000 expected to be cut. The unemployment rate dipped to 9.4 percent from 9.5 percent the previous month. Economists had predicted the jobless rate would rise to 9.6 percent.