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3 Staffing Stocks You'll Regret Not Buying Soon in 2024

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The U.S. labor market concluded last year on a solid note as the pace of hiring exceeded expectations. Job additions improved in most of the sectors in December amid a lower unemployment rate.

The Labor Department stated that employers added 216,000 new jobs last month, way more than November’s downwardly revised 173,000, and higher than economists’ projections of 170,000.

Hiring, by the way, was also revised down in October. But employers successfully added 2.7 million jobs in 2023, at an average monthly gain of 225,000. This is higher than in the years preceding the coronavirus pandemic that rattled the global economy. Thus, it can be concluded that the pace of job growth remains robust, and the labor market is resilient to any imminent recessionary threat.

December’s job growth was mostly led by the government, healthcare, and leisure and hospitality segments. The government contributed 52,000 new jobs in December, while 38,000 jobs were added in the healthcare space. The average monthly job additions in the government and healthcare spaces were more in 2023 than in the prior year.

Meanwhile, leisure and hospitality jobs gained 40,000 last month. Notably, job additions were also robust in the business services, retail and manufacturing sectors.

The unemployment rate, currently, stands at 3.7%. This is lower than the long-term average of 5.7%, a tell-tale sign that jobs are being added to the U.S. economy. What’s more, job additions are expected to pick up in the first half of 2024 as it stopped cooling last month. The Employment Trends Index of the Conference Board increased to 113.15 in December from November’s downwardly revised 112.48.

Thus, with things looking up for the labor market, and the indicator of future job growth strengthening, it’s judicious for investors to place bets on staffing companies like Staffing 360 Solutions (STAF - Free Report) , KornFerry International (KFY - Free Report) and Robert Half Inc. (RHI - Free Report) that can make the most of the promising employment scenario.

These stocks that flaunt a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.

Staffing 360 Solutions is engaged in a global buy-and-build strategy through the acquisition of staffing organizations in the United States.

The Zacks Consensus Estimate for its next-year earnings has moved up 50% over the past 60 days. STAF’s expected earnings growth rate for the current year is almost 55%.

KornFerry International is the world's leading and largest executive recruitment firm.

The Zacks Consensus Estimate for its current-year earnings has moved up 2.9% over the past 60 days. KFY’s expected earnings growth rate for next year is 8.9%.

Robert Half is one of the world's largest providers of professional consulting and staffing services.

The Zacks Consensus Estimate for its current-year earnings has moved up 3.8% over the past 90 days. RHI’s earnings growth rate over the past five-year period is 15.1%, while its estimated earnings growth rate for the next five-year period also remains positive.


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Korn/Ferry International (KFY) - free report >>

Robert Half Inc. (RHI) - free report >>

Staffing 360 Solutions, Inc. (STAF) - free report >>

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