U.S. temp payrolls accelerate, lifting staffing stocks

From Reuters

Stronger-than-expected U.S. jobs growth in July included another large contribution from the temporary help services sector, lifting shares of staffing companies in U.S. and European trading on Friday.

The fastest growth in U.S. temporary payrolls in more than a year also lifted the temp penetration rate -- the percentage of temps in the workforce -- to its highest level in more than five years. The rate is still below past peaks and below levels in other countries, but its steady rise points to the central role that contract, or project-based, workers play in the labor market.

Industry executives and analysts expect the temp percentage rate to reach a record high soon, reflecting caution among employers amid economic uncertainty as well as a shift in the nature of American jobs.

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