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Another negative employment factoid from UK

Demand for contractors has fallen by -13% year-on-year across the UK as fears of a double dip recession intensify, according to research conducted by Staffing Industry Analysts and Innovantage on behalf of the Association of Professional Staffing Companies (APSCo).

Contract labor is frequently thought to be a leading indicator.  In the US, demand for contractors has fallen for several months, and now the same trendline is hitting the UK. 

Stock prices of STaffing/recruitment stocks have rallied off their October lows.  Normally these stocks bottom at the beginning of the recession and begin to rally as the recession sets in.  Basically, stock prices of the industry anticipate future events.  The question is whether they have rallied too early, as in the early 90's, or have they well and truly bottomed.  I would not fully commit to the industry at this price level, but would take a half position.  There is some downside risk, but large upside reward--in time.