Kelly Services News Release (02/02/12)

Kelly Services Inc. announced results for the fourth quarter and full year 2011. Carl Camden, president and chief executive officer, said revenue for the fourth quarter of 2011 totaled $1.4 billion, a 5% increase compared to the corresponding quarter in 2010. Revenue for the full year totaled $5.6 billion, a 12% increase compared to the prior year. Net earnings for the fourth quarter of 2011 totaled $24.1 million, 65% higher than the $14.6 million reported for the fourth quarter of 2010.

In a conference call with investors, Camden stated, “We enter 2012 with cautious optimism. Thus far, positive economic trends are continuing, and that will lead to greater demand for our services.”

Bloomberg (02/02/12) Bob Willis

U.S. jobless claims dropped by 12,000 to a seasonally adjusted 367,000 in the week ended Jan. 28, the U.S. Department of Labor said Thursday. The median forecast of 46 economists in a Bloomberg News survey projected 371,000. The four-week average of claims fell by 2,000 to 375,750. Companies are slowing the pace of firing as the U.S. economy picks up, a necessary step toward bigger gains in employment.

Wall Street Journal (02/02/12) Conor Dougherty

The U.S. manufacturing sector grew in January, and indicators point to additional growth in the coming months. The Institute for Supply Management’s index of overall activity climbed by one point to 54.1 in January from the prior month, roughly corresponding to economists’ forecasts. However, several economists believe it will be difficult for U.S. manufacturers to continue expanding at their current pace, due to an overall slowdown in the global economy.

Wall Street Journal Online (02/01/12) Emily Maltby

Small businesses with fewer than 50 employees added around 95,000 jobs in January, down from 136,000 in December and 111,000 in November, according to the new report from Automatic Data Processing Inc. While small-business owners are more optimistic about conditions at their firms, that optimism has not been translating into a hiring surge.

Over the past year, 22% of the 450 business owners polled added to their payrolls, and 30% expect to do so this year. Moreover, the number of small businesses posting revenue gains, expressing confidence about the future, and obtaining financing has increased since the previous survey in July. However, Todd McCracken, president of the National Small Business Association, notes the improving conditions have not prompted small businesses to increase hiring because they want to be in a better cash position before doing so. He says hiring employees is “a long-term decision,” and small businesses will remain cautious until they feel more confident about the broader economy.

New York Times (02/02/12)

Construction spending rose 1.5% in December, marking the fifth consecutive monthly gain, reported the U.S. Commerce Department. Builders spent on homes and other projects at a seasonally adjusted annual rate of $816.4 billion, the highest level in 20 months. For 2011, outlays on building projects totaled just $787.4 billion, down 2% from 2010 and roughly half the level that economists deem as healthy.

Fox Business (02/01/12) Cindy Vanegas

The high unemployment rate has not put the brakes on staffing firms, as evidenced by the success of Oklahoma City-based Express Employment Professionals. To date, the company reports it has helped five million people find work through its 560 franchises. Robert Funk, chief executive of Express, says in an effort to become the nation’s No. 1 flexible staffing firm, the company plans to increase revenue from $2.1 billion to $3.4 billion and open as many as 70 locations annually in such places as Vermont, San Antonio, San Francisco, Boston, and Orlando over the next few years.