the U.S. Bureau of Labor Statistics
, unemployment rate dropped 0.5 percentage points to 7.9% in September, the lowest amid the coronavirus pandemic. Jobless rate not only declined more than anticipated but fell for the fifth consecutive month. It’s worth pointing out that the rate
touched 14.7% in April
, when the pandemic had peaked before subsiding.
Notably, the U6 rate that mostly includes a wider group of people also
dropped to 12.8% in September
from 14.2% in August. The drop indicates that there are lesser number of people searching for jobs. Per the U.S. Bureau of Labor Statistics, nonfarm payrolls increased by 661,000 in September followed by an upwardly revised employment in August to 1.49 million. In July, the job additions were raised to 1.76 million.
Yes, job additions in September were less than what analysts had expected, primarily due to lesser number of jobs in the field of education. With most schools opting for online education amid the pandemic, a fewer number of teachers, cafeteria workers and bus drivers were needed. Yet, barring education, job additions have been more or less broad-based. Leisure and hospitality lead the way with 318,000 new jobs in September. Similarly, retailers, professional businesses and manufacturers hired 142,000, 89,000 and 66,000 people, respectively. In fact, manufacturers have been able to recover almost half the jobs lost during the early stages of the pandemic.
In the past few months, the employment trend has been encouraging. Since May,
nearly 11.4 million jobs
have been recovered. Lest we forget, the U.S. economy lost a whopping 23 million jobs at the beginning of the coronavirus outbreak.
Some critics may, however, say that the near-term trend isn’t that encouraging. For instance, airliners continue to lay off thousands of workers amid the pandemic. But there is some hope! Speaker Nancy Pelosi recently appealed airliners to delay job cuts and promised to pass a legislation at the earliest that will provide relief to both airliners and their workers. Prominent airliners like American Airlines and United Airlines also assured to recall employees if lawmakers take necessary steps.
By the way, the count of Americans filing for unemployment benefits dropped recently. In the week ending Sep 26, jobless claims
fell by 36,000 to 837,000
. What’s more, the four-week moving average that evens out instabilities in weekly reports dropped by 11,750 to 867,250. The drop in the number of people filing for unemployment benefits indicates that America’s job scenario is improving. In unison,
the Conference Board
added that the percentage of consumers who believe that jobs are abundant increased to 22.9% in September from 21.4% in August. Conversely, the percentage of those who claim jobs are hard to find slipped from 23.6% to 20.0% (read more:
US Consumers Gain Confidence In Economy: 5 Winners
Staffing Stocks to Benefit From Job Addition
U.S. jobs growth is clawing back, albeit at a slow pace. But signs of job additions and low unemployment rate bode well for staffing firms. As jobs lure people into the labor force, the demand for staffing services is rising. Moreover,
the Conference Board’s Employment Trend Index
did increase in the month of August followed by rises in the month of May, June and July. The index read 52.55 for August, up from 51.37 in July.
The resilience in the staffing space is further confirmed from the fact that the Zacks Staffing industry has jumped 13.7% in the past five months.
We have, thus, highlighted five staffing stocks that are worth keeping an eye on –
Kelly Services, Inc
KELYA Quick Quote KELYA - Free Report
) is a global leader of providing workforce solutions. The company currently has a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for its current-year earnings has risen more than 100% over the past 60 days. The company’s expected earnings growth rate for the next year is 29.2%.
Cross Country Healthcare, Inc.
CCRN Quick Quote CCRN - Free Report
) provides talent management and other consultative services for healthcare clients in the United States. The company currently has a Zacks Rank #3. The Zacks Consensus Estimate for its current-year earnings has climbed more than 100% over the past 60 days. The company’s expected earnings growth rate for the next year is 30.8%.
Heidrick & Struggles International, Inc.
HSII Quick Quote HSII - Free Report
) provides executive search and consulting services to businesses. The company currently has a Zacks Rank #3. The Zacks Consensus Estimate for its current-year earnings has moved up more than 100% over the past 90 days. The company’s expected earnings growth rate for the next year is 50.4%.
Staffing 360 Solutions, Inc
STAF Quick Quote STAF - Free Report
) , through its subsidiaries, offers temporary contractors, and permanent placement services. The company currently has a Zacks Rank #3. The Zacks Consensus Estimate for its next-quarter earnings has risen more than 100% over the past 60 days. The company’s expected earnings growth rate for the next quarter is more than 100%.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.