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4 Staffing Stocks to Watch on Robust Job Additions to Economy
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Rising costs have been a cause of concern that has made people spend cautiously. However, jobs and wages are also on the rise, implying that the economy still going strong and that jobs are still in abundance in the United States with employers willing to pay higher.
Although the wage growth may not be matching last year’s pace, the steady rise is helping people spend more freely. At the same time, more jobs mean more disposable income in the hands of people in the form of higher wages. With more than 11 million positions still available in May, job additions are likely to increase in the coming months. Given this scenario, staffing firms like ZipRecruiter, Inc. (ZIP - Free Report) , Cross Country Healthcare, Inc. (CCRN - Free Report) , GEE Group, Inc. (JOB - Free Report) and Resources Connection, Inc. (RGP - Free Report) are likely to benefit in the near term.
Solid Job Additions in June
The Labor Department said on Jul 8 that the U.S. economy added a solid 372,000 jobs in June, higher than the 268,000 expected by economists. This follows the upwardly revised May figures of 384,000 new job additions.
The unemployment rate remained steady and unchanged at 3.6% for the fourth straight month, almost matching the five-decade low that was attained just before the pandemic struck in 2020. The U.S. economy has been steadily adding jobs over the past few months, with a record high attained in April.
This should also give Fed the confidence to continue with the aggressive rate high policy as more jobs will mean more income, which will allow people to spend more.
The report also suggests that employers are finally being successful in filling up vacancies after months that were preventing companies and businesses from operating at their optimum capacity.
Moreover, average hourly pay increased a solid 5.1% to above $32, which is a lot higher than what was seen before the pandemic struck. Although it is still not enough to maintain pace with surging inflation, a jump is always good as it gives people an opportunity to spend more freely.
Also, wage growth has slowed a bit from the 6% attained in 2021. However, wages are still rising steadily, which is a sign that the economy is growing more quickly than anticipated.
Despite a record number of openings, the employment market last year slowed significantly as a spike in cases of the Delta and Omicron strains of coronavirus kept many people out of work. Things are finally shifting, and as the economy grows, more jobs are being created.
Economy Still Going Strong
The increase in jobs in June shows that the economy is still going strong despite inflationary pressures. According to the report, job growth in June was across industries. The back-to-back job growth in the leisure and hospitality sector, which was severely impacted by the pandemic, also proves that the sector is finally rebounding.
The hospitality and leisure sector added 67,000 jobs in June, the majority of which were in the drinking and food service places. Additionally, employment in business services, healthcare and transportation and warehousing continued to grow.
Business and professional services employment increased by an astounding 74,000, while the healthcare sector added 57,000 jobs. Transportation and warehousing added 36,000 jobs, while the jobs in the manufacturing sector increased by 29,000.
However, the rate of job growth has only recently picked up. Prior to the epidemic, employment was at an all-time high. Then came the COVID-19 epidemic, which led to the loss of millions of jobs and the furloughing of others. Labor shortage persists despite the fact that the unemployment rate is going down.
Jobs growth is expected to continue in the coming months too with more than 11.2 million positions still available in the United States.
ZipRecruiter, Inc. provides employment services. ZIP offers recruiting, hiring, job boards, posting, web application, candidate screening, applicant tracking and job alerts services. ZipRecruiter operates principally in the United States and the United Kingdom.
ZipRecruiter’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 64.3% over the past 60 days. ZIP has a Zacks Rank #2.
Cross Country Healthcare, Inc. is a national leader in providing innovative healthcare workforce solutions and staffing services. CCRN’s 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. Cross Country Healthcare is able to place clinicians on travel and per diem assignments, local short-term contracts and permanent positions.
Cross Country Healthcare’s expected earnings growth rate for the current year is 55.9%. The Zacks Consensus Estimate for current-year earnings has improved 4.4% over the past 60 days. CCRN has a Zacks Rank #3.
GEE Group, Inc. is a provider of professional staffing services and solutions. JOB formerly known as General Employment Enterprises, Inc., is based in Naperville, IL.
GEE Group’s expected earnings growth rate for the current year is more than 100%. Shares of JOB have gained 1.8% in the past three months. JOB has a Zacks Rank #3.
Resources Connection, Inc. is a multinational professional services firm that helps business leaders execute internal initiatives. RGP provides experienced accounting and finance, human resources management and information technology professionals to clients on a project-by-project basis.
Resources Connection’s expected earnings growth rate for the current year is 20%. Shares of RGP have gained 18% in the past three months. RGP has a Zacks Rank #3.
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4 Staffing Stocks to Watch on Robust Job Additions to Economy
Rising costs have been a cause of concern that has made people spend cautiously. However, jobs and wages are also on the rise, implying that the economy still going strong and that jobs are still in abundance in the United States with employers willing to pay higher.
Although the wage growth may not be matching last year’s pace, the steady rise is helping people spend more freely. At the same time, more jobs mean more disposable income in the hands of people in the form of higher wages. With more than 11 million positions still available in May, job additions are likely to increase in the coming months. Given this scenario, staffing firms like ZipRecruiter, Inc. (ZIP - Free Report) , Cross Country Healthcare, Inc. (CCRN - Free Report) , GEE Group, Inc. (JOB - Free Report) and Resources Connection, Inc. (RGP - Free Report) are likely to benefit in the near term.
Solid Job Additions in June
The Labor Department said on Jul 8 that the U.S. economy added a solid 372,000 jobs in June, higher than the 268,000 expected by economists. This follows the upwardly revised May figures of 384,000 new job additions.
The unemployment rate remained steady and unchanged at 3.6% for the fourth straight month, almost matching the five-decade low that was attained just before the pandemic struck in 2020. The U.S. economy has been steadily adding jobs over the past few months, with a record high attained in April.
This should also give Fed the confidence to continue with the aggressive rate high policy as more jobs will mean more income, which will allow people to spend more.
The report also suggests that employers are finally being successful in filling up vacancies after months that were preventing companies and businesses from operating at their optimum capacity.
Moreover, average hourly pay increased a solid 5.1% to above $32, which is a lot higher than what was seen before the pandemic struck. Although it is still not enough to maintain pace with surging inflation, a jump is always good as it gives people an opportunity to spend more freely.
Also, wage growth has slowed a bit from the 6% attained in 2021. However, wages are still rising steadily, which is a sign that the economy is growing more quickly than anticipated.
Despite a record number of openings, the employment market last year slowed significantly as a spike in cases of the Delta and Omicron strains of coronavirus kept many people out of work. Things are finally shifting, and as the economy grows, more jobs are being created.
Economy Still Going Strong
The increase in jobs in June shows that the economy is still going strong despite inflationary pressures. According to the report, job growth in June was across industries. The back-to-back job growth in the leisure and hospitality sector, which was severely impacted by the pandemic, also proves that the sector is finally rebounding.
The hospitality and leisure sector added 67,000 jobs in June, the majority of which were in the drinking and food service places. Additionally, employment in business services, healthcare and transportation and warehousing continued to grow.
Business and professional services employment increased by an astounding 74,000, while the healthcare sector added 57,000 jobs. Transportation and warehousing added 36,000 jobs, while the jobs in the manufacturing sector increased by 29,000.
However, the rate of job growth has only recently picked up. Prior to the epidemic, employment was at an all-time high. Then came the COVID-19 epidemic, which led to the loss of millions of jobs and the furloughing of others. Labor shortage persists despite the fact that the unemployment rate is going down.
Jobs growth is expected to continue in the coming months too with more than 11.2 million positions still available in the United States.
Stocks to Watch
Given this situation, focusing on staffing stocks appears prudent. Here are some staffing stocks that carry a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) worthy of mention. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ZipRecruiter, Inc. provides employment services. ZIP offers recruiting, hiring, job boards, posting, web application, candidate screening, applicant tracking and job alerts services. ZipRecruiter operates principally in the United States and the United Kingdom.
ZipRecruiter’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 64.3% over the past 60 days. ZIP has a Zacks Rank #2.
Cross Country Healthcare, Inc. is a national leader in providing innovative healthcare workforce solutions and staffing services. CCRN’s 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. Cross Country Healthcare is able to place clinicians on travel and per diem assignments, local short-term contracts and permanent positions.
Cross Country Healthcare’s expected earnings growth rate for the current year is 55.9%. The Zacks Consensus Estimate for current-year earnings has improved 4.4% over the past 60 days. CCRN has a Zacks Rank #3.
GEE Group, Inc. is a provider of professional staffing services and solutions. JOB formerly known as General Employment Enterprises, Inc., is based in Naperville, IL.
GEE Group’s expected earnings growth rate for the current year is more than 100%. Shares of JOB have gained 1.8% in the past three months. JOB has a Zacks Rank #3.
Resources Connection, Inc. is a multinational professional services firm that helps business leaders execute internal initiatives. RGP provides experienced accounting and finance, human resources management and information technology professionals to clients on a project-by-project basis.
Resources Connection’s expected earnings growth rate for the current year is 20%. Shares of RGP have gained 18% in the past three months. RGP has a Zacks Rank #3.