Is Shift to Temp Staffing Permanent? a Wall Street Transcript Interview with Jeffrey M. Silber, Managing Director for BMO Capital Markets

Wall Street Transcript

67 WALL STREET, New York - January 22, 2013 - The Wall Street Transcript has just published its Staffing, Outsourcing and Rental & Leasing Services Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Workforce Flexibility Requirements - Growth in Temporary Staffing Demand - Secular Trend Toward Temporary Staffing - Strong Demand For IT Staffing - Growth in Equipment Leasing Adoption Rates - Consolidation Potential in Fragmented Industry

Companies include: Manpower Inc. (MAN), Robert Half International Inc. (RHI), Dice Holdings, Inc. (DHX), Monster Worldwide, Inc. (MWW), Automatic Data Processing, Inc (ADP), Paychex Inc. (PAYX), On Assignment Inc. (ASGN), AMN Healthcare Services Inc. (AHS), TrueBlue, Inc. (TBI)

Mr. Silber publishes two periodic industry reports: The Staffing Indicator, on staffing services, and The Report Card, on the education industry. In the following excerpt from the Staffing, Outsourcing and Rental & Leasing Services Report, Mr. Silber discusses the outlook for the sector for investors.

TWST: If you would, please start by giving our readers an overview of your coverage universe focusing on the staffing and outsourcing areas.

Mr. Silber: Within the broader business services area we cover a few groups that I would categorize within staffing and outsources. First is temporary staffing, which would include companies like ManpowerGroup (MAN) and Robert Half International (RHI). We also cover some of the online recruiting companies like Dice Holdings (DHX) and Monster Worldwide (MWW). And our newest coverage are the payroll processors, those would be companies like Automatic Data Processing (ADP) and Paychex (PAYX).

TWST: Let's talk about the temporary staffing and online recruiting areas first. What's your sentiment right now?

Mr. Silber: Staffing historically has been a countercyclical group, and this cycle has been no exception to that. But there seems to be something different this cycle. We are in already the fourth year of the economic recovery, as the recession ended back in mid-2009.

By now we should be seeing the shift from temp to perm, meaning more companies should be relying on full-time employees as opposed to temporary employees. While the full-time hiring market is picking up a bit, it's not picking up as much as it should at this point in the cycle. So temporary staffing is still doing fairly well. The latest data from the Bureau of Labor Statistics shows that temporary employment is still growing in the high single digits. It should be probably running...

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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