The number of temporary workers has been increasing for many tears. According to a recent press release from the Bureau of Labor Statistics on July 5, "Employment continued to trend up in temporary help services (+10,000)". Why are companies hiring more temps and less full time workers?
- Avoiding Obamacare
- Ease of terminating temporary employees in the event of a business downturn
- Getting to know how a potential employee will work out before hiring them as a permanent employee
- More financial flexibility
- Avoiding unemployment taxes
- No union issues
- Transfer of the burden of I-9 checks
There are many other reasons that companies use temporary workers, but you can see how these benefits can cause numerous companies to turn to temporary agencies. According to WallStreetNewsNetwork.com, there are over a dozen publicly traded companies which provide temporary employment services, with half a dozen paying dividends.
Robert Half International (NYSE:RHI) is a provider of temporary and full-time staffing throughout the world. This Menlo Park, California based company was founded in 1948. The stock, which trades at 22 times trailing earnings and 17 times forward earnings, pays a generous dividend of 1.9%. Earnings for the latest reported quarter jumped 15.6% on a 0.8% rise in revenues. The company reports earnings on July 22.
Another major player in the temp worker employment field is Kelly Services, Inc. (NASDAQ:KELYA) which has been in business since 1946. The stock has a trailing price to earnings ratio of 13 and a trailing PE of 11. The dividend yield is a CD beating 1.1%. Latest quarterly earnings spiked 34.4% on a 3% drop in sales. The company will report n August 5.
ManpowerGroup (NYSE:MAN) has about 3,500 offices in 80 countries. It trades at 16 times forward earnings, however recent quarterly earnings were down 40.5% on a 6.4% reduction in revenues. The dividend yield is 1.5%. Earnings will be reported July 19.
For a free list of all the temporary staffing stocks, go to WallStreetNewsNetwork.com.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.