In continuing Quantitative Easing III earlier this week, Federal Reserve Chairman Ben Bernanke admitted to all that the US economy is still weak. Quantitative Easing III is the program of the Federal Reserve that has it buying about one trillion in securities each year to keep interest rates low in the United States. But the American economy has still not fully recovered from The Great Recession, despite trillions in securities being purchased by the Federal Reserve.
What this has done is increase the number of part-time workers in the United States.
Companies are too unsure of the future to commit to full-time employees. In addition, the costs of benefits for full-time workers is too high for many firms. Those expenses will only increase when the mandate for employers to provide health insurance to full-time staff takes effect on January 1, due to Obamacare.
As a result of these factors, stocks in the staffing industry have a promising future.
These include Labor SMART (OTCBB: LTNC), Kelly Services (NASDAQ: KELYA), and ManPower Group (NYSE: MAN). For 2013, ManPower Group is up by nearly 80%. Over the same period, the stock price for Kelly Services has risen by nearly 30%.
Last month, Labor SMART reported recorded revenues. The revenues it booked for August were 175% higher than those for last year. In addition, Labor SMART added more than 100 clients in August.,
Labor SMART demonstrates well the growth potential for the entire industry.
The company is increasing its offerings and its physical presence. Earlier this year, it purchased QWIK Staffing Solutions so that it could profit from the Florida market from its headquarters in Georgia. Labor SMART is expanding it both what it offers its customers and where it obtains new clients. The client list of Labor SMART now ranges from small businesses to Fortune 100 companies. Based on its trends, investors should expect that to grow even more for Labor SMART.
That is true for the entire staffing industry, now around $100 billion in size. The American economy depends on it to meets its evolving needs. This need for the products and services of firms such as Labor SMART, Kelly Services, and ManPower Group should only increase in the future. As a result, so should the stock prices for these companies!