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Blowout Jobs Report a Godsend for These 3 Staffing Stocks
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The labor market ended the first three months of the year on a solid footing, with jobs being added steadily and the unemployment rate edging lower. Job additions easily topped expectations in March despite higher interest rates, a tell-tale sign that the economy remains insulated from looming recessionary threats.
Nonfarm payrolls increased by 303,000 in March, way higher than analysts’ projections of payrolls increasing by 200,000, per the Bureau of Labor Statistics. The jump in new jobs was the most since May 2023. Job creations, by the way, remained above the threshold of 100,000 job additions per month, signifying hiring by employers across all working-age populaces.
Interestingly, job additions in February were lowered to 270,000 from the prior 275,000, while January’s job additions were raised to 256,000 from 229,000. However, job additions in the first month of the year are a heartening sign since employers cut jobs during this period as demand waned due to the end of the holiday shopping season.
Nonetheless, job additions remained robust in March. Healthcare employment increased by 72,000, while 71,000 government jobs were added. Additionally, leisure and hospitality, construction, and retail trade employment increased by 49,000, 39,000 and 18,000, respectively. Meanwhile, 16,000 jobs were added in the “other services” category.
What’s more, the jobless rate dropped to 3.8% in March, lower than the 3.9% estimated. The unemployment rate remained below the 4% mark for the last 26 months, the longest stretch since 1960, and indicated robust hiring.
The leading index for jobs growth, the employment trend index of the Conference Board, also increased to 112.84 in March from February’s downwardly revised reading of 111.85. The index remained above its pre-pandemic level and new job additions are likely to last in the second quarter as well, per the Conference Board’s Associate Economist, Will Baltrus.
Thus, with job prospects firming, astute investors should keep tabs on staffing companies like Korn Ferry (KFY - Free Report) , Staffing 360 Solutions, Inc. (STAF - Free Report) and DLH Holdings Corp. (DLHC - Free Report) that can make the most of the healthy employment scenario.
Korn Ferry is the world's leading and largest executive recruitment firm. The Zacks Consensus Estimate for its current-year earnings has increased 6.1% over the past 60 days. KFY’s expected earnings growth rate for next year is 13.2%. KFY currently has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Staffing 360 Solutions is engaged in a global buy-and-build strategy through the acquisition of staffing organizations. The Zacks Consensus Estimate for its current-year earnings has increased 38% over the past 60 days. STAF’s expected earnings growth rate for the next quarter is 85.7%. STAF currently, has a Zacks Rank #2 (Buy).
DLH Holdings serves clients throughout the United States as a full-service provider of healthcare, logistics and technical support services to DoD and Federal agencies. The Zacks Consensus Estimate for its current-year earnings has increased 1.9% over the past 90 days. DLHC’s expected earnings growth rate for next year is 72.7%. DLHC currently has a Zacks Rank #3 (Hold).
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Blowout Jobs Report a Godsend for These 3 Staffing Stocks
The labor market ended the first three months of the year on a solid footing, with jobs being added steadily and the unemployment rate edging lower. Job additions easily topped expectations in March despite higher interest rates, a tell-tale sign that the economy remains insulated from looming recessionary threats.
Nonfarm payrolls increased by 303,000 in March, way higher than analysts’ projections of payrolls increasing by 200,000, per the Bureau of Labor Statistics. The jump in new jobs was the most since May 2023. Job creations, by the way, remained above the threshold of 100,000 job additions per month, signifying hiring by employers across all working-age populaces.
Interestingly, job additions in February were lowered to 270,000 from the prior 275,000, while January’s job additions were raised to 256,000 from 229,000. However, job additions in the first month of the year are a heartening sign since employers cut jobs during this period as demand waned due to the end of the holiday shopping season.
Nonetheless, job additions remained robust in March. Healthcare employment increased by 72,000, while 71,000 government jobs were added. Additionally, leisure and hospitality, construction, and retail trade employment increased by 49,000, 39,000 and 18,000, respectively. Meanwhile, 16,000 jobs were added in the “other services” category.
What’s more, the jobless rate dropped to 3.8% in March, lower than the 3.9% estimated. The unemployment rate remained below the 4% mark for the last 26 months, the longest stretch since 1960, and indicated robust hiring.
The leading index for jobs growth, the employment trend index of the Conference Board, also increased to 112.84 in March from February’s downwardly revised reading of 111.85. The index remained above its pre-pandemic level and new job additions are likely to last in the second quarter as well, per the Conference Board’s Associate Economist, Will Baltrus.
Thus, with job prospects firming, astute investors should keep tabs on staffing companies like Korn Ferry (KFY - Free Report) , Staffing 360 Solutions, Inc. (STAF - Free Report) and DLH Holdings Corp. (DLHC - Free Report) that can make the most of the healthy employment scenario.
Korn Ferry is the world's leading and largest executive recruitment firm. The Zacks Consensus Estimate for its current-year earnings has increased 6.1% over the past 60 days. KFY’s expected earnings growth rate for next year is 13.2%. KFY currently has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Staffing 360 Solutions is engaged in a global buy-and-build strategy through the acquisition of staffing organizations. The Zacks Consensus Estimate for its current-year earnings has increased 38% over the past 60 days. STAF’s expected earnings growth rate for the next quarter is 85.7%. STAF currently, has a Zacks Rank #2 (Buy).
DLH Holdings serves clients throughout the United States as a full-service provider of healthcare, logistics and technical support services to DoD and Federal agencies. The Zacks Consensus Estimate for its current-year earnings has increased 1.9% over the past 90 days. DLHC’s expected earnings growth rate for next year is 72.7%. DLHC currently has a Zacks Rank #3 (Hold).