The staffing industry was badly hit by the coronavirus pandemic. However, certain tailwinds have led to renewed enthusiasm among investors lately, which can be gauged from the fact that the Zacks Staffing industry has gained 30.4% in the past six months, handily outperforming the S&P 500 Index’s 27.4% appreciation and 20.9% rally of the broader Zacks Business Services sector.
The gradually recovering U.S. economy, backed by upbeat manufacturing and non-manufacturing activities, is aiding the staffing industry as evident from the additional hiring and wage increase.
Numbers That Validate This Growth
Notably, the U.S. economy added 1.4 million jobs in August, with the unemployment rate coming down to 8.4% from 10.2% in July and 11.1% in June. The unemployment rate declined by 1.8 percentage points in August and the number of unemployed persons fell by 2.8 million to 13.6 million. Both the metrics reflected a downside for the fourth straight month.