5 Staffing Stocks To Benefit From U.S. Employment Growth

Employment in the United States jumped more than expected in August with blue and white collar industries adding adequate jobs. Notably, jobs were added in professional and business services, healthcare, transportation and warehousing, wholesale trade and mining.

The country’s job market remained optimistic despite President Donald Trump’s protectionist trade policies resulting in uncertainties. Employers shrugged off trade war tensions and went on a hiring spree, making the backdrop favorable for staffing companies.

Employment Data Fared Better Than Expected

A survey by Reuters had projected non-farm payroll employment to increase by 191,000 jobs in August but the data released by Bureau of Labor Statistics shows 201,000 job additions in the month.

The surge in non-farm payroll jobs last month was on par with the average monthly gain of 196,000 over a year.

More Vacancies and Fewer Skilled Workers to Boost Hiring

The modest rise in average hourly earnings is the result of a tight labor market, as employers raised pays to retain workers. As the available jobs were more than job seekers, employers had to raise wages. Growth in wage has been the highest since April 2009, per a CNBC report.

Strong U.S. economic growth and positive perception of the job market drove many Americans to quit their jobs for greener pastures. The U.S. Labor Department reported about 3.4 million Americans quitting their jobs in June with the confidence that they will find a better-paying job.

The availability of fewer skilled workers in the labor market led employers to either open their doors to unskilled, inadequately trained job aspirants or increase wages to retain their experienced staff. This is what is leading to increased demand for staffing solutions.

Strong Trend in Recruitment

The United States witnessed job gains for 95 months straight in August with the job market adding more white collar jobs than blue collar ones. Professional and business services contributed most to the industry last month, adding 53,000 jobs. Healthcare added 33,000 jobs followed by an addition of 23,000 jobs in construction; 22,000 in wholesale trade; 20,000 in transportation and warehousing and 6,000 in mining.