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Dec
10
John Murphy
Positive Economic Reports are more Good News for Staffing Industry Stocks
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For those looking at the recent reports of bullish economic news and wondering where to invest, the workforce industry and its publicly traded companies such as Robert Half International (NYSE: RHI), TrueBlue (NYSE: TBI), and Labor SMART (OTC: LTNC) are ideally situated to prosper.  As detailed in previous articles on this site, the $100 billion staffing industry in the United States should do well, no matter what the economy does.  Within the staffing industry, the $29 billion demand labor group with firms such as TrueBlue and Labor SMART should continue to reward investors.

The recent bullish economic news was that economic growth is up in the United States, with unemployment down.

The more the American economy grows, the more of a demand there is for project workers.  These can be professionals like lawyers and accountants from Robert Half International.  Or it can be a wide range of temporary employees from Labor SMART and TrueBlue.  Due to the nature of the industry, demand labor firms are performing very well; and should do so  into the future.

That is why TrueBlue is up more than 40% for 2013 (chart below); and Labor SMART continues to post record revenues.

This should continue with the economy doing better as more companies will hire more temporary employees.  Due to the costs of ObamaCare, companies do not want to bring on full time workers.  For businesses with over 50 employees, it is now the law as a result of ObamaCare that a very expensive insurance policy must be provided to those who work more than 30 hours a week.   As pointed out by a recent article in The Wall Street Journal, firms are finding out that the policy is more expensive than previously thought.

For investors, there are a wide range of stocks in the staffing industry.

Robert Half International has a lucrative niche for professions in law and finance.  Labor SMART and TrueBlue are doing very well in the demand labor group.  As a small cap, Labor SMART is appealing for growth investors.  For those looking for dividend income, there is Paychex (NASDAQ: PAYX), which has an above average yield of over 3.2%.

 

 



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