The economy is reopening, industries are getting back to functioning at their optimum levelsand people are finding new jobs. Also, there has lately been a major change in hiring with a gradual transition from a candidate-driven market to a job-oriented market.
The United States added a record number of jobs in July, indicating that people are more confident about going back to work now as they get vaccinated. This in a way is directly helping staffing companies as they too are getting busy helping people find jobs.
U.S. Adds Record Number of Jobs
Hiring rose at a record pace in July, the fastest in almost a year, as the economy started functioning in full swing. The Labor Department said on Friday that nonfarm payrolls increased 943,000. The jump in July payrolls is the biggest and fastest since August 2020.
Also, the unemployment rate declined to 5.4% in July from 5.9% in June, according to the Bureau of Labor Statistics. The number of unemployed people declined 782,000 to 8.7 million. Temporary unemployment numbers fell to 1.2 million in July, marking a decline of 572,000.
Industries have been on a hiring spree for the past few months pushing the unemployment rate down. The number of Americans who were temporarily unemployed was 18 million in April 2020. This was just after several companies decided to lay off or furlough employees following the coronavirus outbreak that compelled many to halt production.
Signs of Economic Recovery
A higher rate of hiring and a decline in the unemployment rate are indications that the economy is finally getting back on its feet. Also, average hourly earnings for employees on private nonfarm payrolls increased by $0.11 to $30.54 in July, which proves that employers are ready to shell out more on an employee.
The job gains in July were primarily driven by hiring in the leisure and hospitality sector. As many as 380,000 heads were hired as more people started stepping out of their homes and planned holidays. A good sign is that the jump in hiring and a decline in unemployment come despite the growing cases of COVID-91.
Needless to say, the growing cases of the Delta variant of coronavirus haven’t dampened the spirit of people. Instead, people are more confident now.
Hiring will be on the rise as the economy further reopens. This thus makes for an ideal opportunity to invest in staffing stocks.
KornFerry International ( KFY Quick Quote KFY - Free Report) is the world's leading and largest executive recruitment firm with the broadest global presence in the executive recruitment industry.
The company’s expected earnings growth rate for the current year is 64.1%. The Zacks Consensus Estimate for current-year earnings improved 21.5% over the past 30 days. KornFerry International carries a Zacks Rank #2 (Buy). You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Cross Country Healthcare, Inc. ( CCRN Quick Quote CCRN - Free Report) is a national leader in providing innovative healthcare workforce solutions and staffing services. Their diverse client base includes both clinical and nonclinical settings, servicing acute care hospitals, physician practice groups, outpatient and ambulatory-care centers, nursing facilities, both public schools and charter schools, rehabilitation and sports medicine clinics, government facilities, and homecare.
The company’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings improved 14.4% over the past 30 days. Cross Country Healthcare has a Zacks Rank #2.
Heidrick & Struggles International, Inc. ( HSII Quick Quote HSII - Free Report) serves the executive talent and leadership needs of the world's top organizations as the premier provider of leadership consulting, culture shaping and senior-level executive search services.
The company’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings improved 17.1% over the past 30 days. Heidrick & Strugglessports a Zacks Rank #1.
ManpowerGroup Inc. ( MAN Quick Quote MAN - Free Report) is one of the leading providers of innovative workforce solutions and services across the globe. The company has a well-established network of 2,500 offices in 75 countries and territories.
The company’s expected earnings growth rate for the current year is 89.7% The Zacks Consensus Estimate for current-year earnings improved 10.1% over the past 30 days. ManpowerGrouphas a Zacks Rank #2.
Robert Half International Inc. ( RHI Quick Quote RHI - Free Report) is one of the world's largest providers of professional consulting and staffing services.
The company’s expected earnings growth rate for the current year is 81.1% The Zacks Consensus Estimate for current-year earnings improved 17.5% over the past 30 days. Robert Half Internationalholds a Zacks Rank #2.