Companies in the staffing and outsource industry such as Paychex (NASDAQ: PAYX), TrueBlue (NYSE: TBI), Robert Half (NYSE: RHI), and Labor SMART (OCTBB: LTNC) continue to perform well. The changes in the American economy as a result of The Great Recession have resulted in a greater demand for the services and products of these companies. Businesses now prefer to hire temporary or part-time workers rather than take on the costs of a full-time employee.
Those expenses will rise due to the Affordable Care Act, or ObamaCare.
Firms with more than 50 full-time employees, defined as 30 hours a week or more, must provide them with health insurance. The Federal Government dictates what must be included in that health insurance policy. Needless to say, it is a very costly policy, that will only rise in cost.
What has been rising is the stock prices and revenues for companies in the $100 billion staffing industry in the United States.
For 2013, Paychex is up more than 35%. Over the same period, Robert Half International has jumped almost 30%. Since the first of the year, TrueBlue has soared more than 67%.
It is the same story for the revenues for Labor SMART, which operates in the $29 billion demand labor segment of the staffing sector. Labor SMART just posted record results for the quarter. The quarterly revenues for Labor SMART are now higher than the market cap.
The chart below shows how TrueBlue has soared over the last year. TrueBlue is up for the last week, month, quarter, and six month periods of market action.