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The U.S. jobs market remained strong despite a slew of headwinds lately. Hiring in the United States accelerated in May as the labor market shrugged off Washington’s struggle over the debt ceiling issue, the banking turmoil, higher interest rates and elevated inflation.
The Labor Department stated that employers added a whopping 339,000 new jobs in May, way more than analysts’ estimate of job additions of 195,000. Over the past three months, job additions averaged 283,000, while March and April’s job additions were revised up by a total of another 93,000 jobs. Notably, the U.S. economy was able to register positive job growth for the 29th successive month in May.
May’s hiring was robust, with professional and business services adding 64,000 new hires. Government and healthcare also contributed an addition of 56,000 and 52,000 jobs, respectively. Thanks to the warmer weather and Americans traveling and dining out more, the leisure and hospitality industry saw the addition of 48,000 new jobs. Similarly, construction, transportation and warehousing contributed 25,000 and 24,000 new jobs, individually.
Interestingly, the unemployment rate increased from a five-decade low of 3.4% to 3.7% in May, added the Labor Department. Now, that may be the highest level since October 2022, but it still hovers near the lowest level since 1969. Moreover, the jobless rate remains below the coveted 4% mark for a prolonged period, indicating a resilient labor market.
Now, with more jobs being added to the U.S. economy, staffing companies are undeniably positioned to benefit. After all, they are direct beneficiaries of job additions.
It’s also worth pointing out that the recent layoffs by several firms have compelled more individuals to search for new jobs, eventually helping staffing companies. At the same time, once inflation gets controlled and the Federal Reserve pauses the rate hike, companies will begin to hire more, thus benefiting staffing players.
Insperity (NSP - Free Report) provides an array of human resources and business solutions designed to help improve business performance.
NSP’s expected earnings growth rate for the current and next year are 5.7% and 4.2%, respectively. NSP’s shares are likely to gain 15% in the next five-year period. NSP’s shares have already gained 14.7% in the past five-year period.
Kelly Services (KELYA - Free Report) is a global leader in providing workforce solutions. It has offices located in major cities in the United States.
KELYA’s expected earnings growth rate for the current and next year are 21.8% and 23.5%, respectively. KELYA’s shares are likely to gain 13% in the next five-year period.
GEE Group (JOB - Free Report) is a provider of professional staffing services and solutions.
JOB’s expected earnings growth rate for next year is 100%. JOB’s shares are likely to gain 15% in the next five-year period.
Kforce (KFRC - Free Report) provides professional staffing services and solutions to clients on both a temporary and permanent basis through the Technology Finance and Accounting segments.
KFRC’s expected earnings growth rate for next year is 3.9%. KFRC’s shares have already gained 19.8% in the past five-year period.
Robert Half International (RHI - Free Report) is one of the world's largest providers of professional consulting and staffing services.
RHI’s expected earnings growth rate for next year is 16.3%. RHI’s shares have already gained 15.1% in the past five years.
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5 Stocks to Gain From Stunning Jobs Growth in May
The U.S. jobs market remained strong despite a slew of headwinds lately. Hiring in the United States accelerated in May as the labor market shrugged off Washington’s struggle over the debt ceiling issue, the banking turmoil, higher interest rates and elevated inflation.
The Labor Department stated that employers added a whopping 339,000 new jobs in May, way more than analysts’ estimate of job additions of 195,000. Over the past three months, job additions averaged 283,000, while March and April’s job additions were revised up by a total of another 93,000 jobs. Notably, the U.S. economy was able to register positive job growth for the 29th successive month in May.
May’s hiring was robust, with professional and business services adding 64,000 new hires. Government and healthcare also contributed an addition of 56,000 and 52,000 jobs, respectively. Thanks to the warmer weather and Americans traveling and dining out more, the leisure and hospitality industry saw the addition of 48,000 new jobs. Similarly, construction, transportation and warehousing contributed 25,000 and 24,000 new jobs, individually.
Interestingly, the unemployment rate increased from a five-decade low of 3.4% to 3.7% in May, added the Labor Department. Now, that may be the highest level since October 2022, but it still hovers near the lowest level since 1969. Moreover, the jobless rate remains below the coveted 4% mark for a prolonged period, indicating a resilient labor market.
Now, with more jobs being added to the U.S. economy, staffing companies are undeniably positioned to benefit. After all, they are direct beneficiaries of job additions.
It’s also worth pointing out that the recent layoffs by several firms have compelled more individuals to search for new jobs, eventually helping staffing companies. At the same time, once inflation gets controlled and the Federal Reserve pauses the rate hike, companies will begin to hire more, thus benefiting staffing players.
On this positive note, we have highlighted five staffing stocks that are worth a look now. These stocks currently possess a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Insperity (NSP - Free Report) provides an array of human resources and business solutions designed to help improve business performance.
NSP’s expected earnings growth rate for the current and next year are 5.7% and 4.2%, respectively. NSP’s shares are likely to gain 15% in the next five-year period. NSP’s shares have already gained 14.7% in the past five-year period.
Kelly Services (KELYA - Free Report) is a global leader in providing workforce solutions. It has offices located in major cities in the United States.
KELYA’s expected earnings growth rate for the current and next year are 21.8% and 23.5%, respectively. KELYA’s shares are likely to gain 13% in the next five-year period.
GEE Group (JOB - Free Report) is a provider of professional staffing services and solutions.
JOB’s expected earnings growth rate for next year is 100%. JOB’s shares are likely to gain 15% in the next five-year period.
Kforce (KFRC - Free Report) provides professional staffing services and solutions to clients on both a temporary and permanent basis through the Technology Finance and Accounting segments.
KFRC’s expected earnings growth rate for next year is 3.9%. KFRC’s shares have already gained 19.8% in the past five-year period.
Robert Half International (RHI - Free Report) is one of the world's largest providers of professional consulting and staffing services.
RHI’s expected earnings growth rate for next year is 16.3%. RHI’s shares have already gained 15.1% in the past five years.