Temp Staffing Points To Continued Job Growth

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Temp Staffing Points To Continued Job Growth

This has proven to be a very effective gauge of where the trend in NFP is going to go…..bottom line is we can expect to continue to add jobs

“Davidson” submits:

Of the many indicators of economic activity available the ASA Staffing Index continues to provide one of the more timely measures available. It is issued weekly and its multi-month trend has proven a good forecast to other well known economic measures.

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The 2014 trend is the TURQUOISE LINE which is not only trending higher than last year’s levels, 2013 PURPLE BLUE LINE, but also is trending higher than that of 2007 GREEN LINE, which reported the highest level of activity ever reported for this index.

With investments, I believe that it is the simplest relationships which are the most important. Rising employment is the NUMBER 1 measure of economic expansion. Individuals gaining employment at any level have more money with which to stimulate further economic expansion.

Stocks rise/Bonds fall with economic expansion.

I think we overthink the details presented to us hourly in the media. Many fail to visualize the underlying economic trend which moves at a snail’s pace in comparison. Many think that slight wiggles in the monthly economic data spell out the remaining economic cycle when in fact they only represent the innocuous statistical limitations of measurement.

The ASA Staffing Index is good as a forecasting tool for economic trends. We can see a recent slight dip which can be correlated to our recent spate of harsh winter weather, but there is no impact discernible from Russia’s invasion of Ukraine.

All remains a go for future economic growth in my opinion and my best guess is that expansion is likely to be continued by housing and general construction trends for the next 5yrs-7yrs. SPDR S&P 500 ETF Trust (NYSEARCA:SPY)

Staffing

 

Here is my chart that I think better illustrates the growth:

screenshot_185

We are comfortably ahead of each of the last 6 years

Via: valueplays

Updated on

Todd Sullivan is a Massachusetts-based value investor and a General Partner in Rand Strategic Partners. He looks for investments he believes are selling for a discount to their intrinsic value given their current situation and future prospects. He holds them until that value is realized or the fundamentals change in a way that no longer support his thesis. His blog features his various ideas and commentary and he updates readers on their progress in a timely fashion. His commentary has been seen in the online versions of the Wall St. Journal, New York Times, CNN Money, Business Week, Crain’s NY, Kiplingers and other publications. He has also appeared on Fox Business News & Fox News and is a RealMoney.com contributor. His commentary on Starbucks during 2008 was recently quoted by its Founder Howard Schultz in his recent book “Onward”. In 2011 he was asked to present an investment idea at Bill Ackman’s “Harbor Investment Conference”.
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