Since the onset of the recession one of the fastest growing industry segments has been the Professional & Business Services segment (read temp jobs). This segment has seen sustained traction for the past many quarters due to several economic situations, both domestically, and globally. These “temp” jobs have been correlated to the overall unemployment levels over the past several years.
In April, the unemployment rate dropped from 6.7% to 6.3% with the number of unemployed persons decreasing by 733,000. According to the BLS Employment data, nonfarm payroll employment rose by 288,000 in April. The upcoming May unemployment numbers are expected to be released on Friday June 6th, and the street is expecting an increase of 210,000 nonfarm payroll numbers.
According to the Palmer Forecast, the demand for temporary workers in the USA is expected to increase 8.5% on a seasonally adjusted basis for the second quarter 2014; this is after a 9.3% increase in Q1 2014. More importantly, this would make the seventeenth consecutive quarter of year-over-year increases in the demand for temporary workers.
Specifically, the Professional & Business services segment saw the greatest percentage of new jobs in April, accounting for just over 26% of the 288,000 jobs created (Education and Health Services was the second highest, accounting for 13.9% of total new jobs). Moreover, Professional & Business service companies are expected to once again lead all industry segments in new hires in the coming quarters.
— Zacks Investment Research