- Temporary employment has been increasing. However as an investor beware of the red flags in terms of valuations. The valuations traded by these temporary & human resources are out of kilter with their actual growth. A large number of these stocks have continued to see negative growth. Structural changes in employment take many years before they can be corrected.
- Manufacturing employment continues to decline. This hurts companies such as Manpower (MAN) due to their heavy emphasis in the manufacturing sector.
- The average work week remains at 33.2 hours. Hence if there is a remote pick up in the economy, capacity utilization, along with current work staff will grow. Rather then hiring massive number of temps. Although short term temps look attractive due to the lack of benefits paid out to a majority of temps, temps create low morale and weak productivity on a longer term bases.
Because of the weak outlook by companies for revenue growth open positions, especially permanent positions will be weak at best.
No comments:
Post a Comment