Recruitment Industry's Cyclical Nature Remains Intact

The recruitment industry has long been considered a cyclical sector, feasting in the good times and facing famines in the recessions, this time around we have seen little to challenge this notion. One such recruitment company is Manpower Inc. (MAN), its share price over the last 12 months has mirrored that of the S&P500 and the US economy as a whole.

Over the last three months as we have seen the S&P500 rally, the short base (as measured by Percent Shares Outstanding on Loan) in MAN has decreased by 36.9% to 2.14%. Monster Worldwide Inc (MWW) has a different business model, focusing on recruitment technology solutions,but its short base has also decreased substantially by 48.71% to 6.60% over the same three month period.

Many believe that the role of technology (Linked-In, recruitment websites and online consultants) could yet be a “game changer” as the US economy moves out of this recession.

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Comments

[User 426022:]

Interesting insight, do you think that the recruitment industry is a leading indicator for the US economy?

I'd like to see the full report, but that link doesn't seem to work.

Jun 04 11:00 PM