Kforce News Release (02/07/12)

Kforce Inc., a provider of professional staffing services and solutions, on Feb. 7 announced results for its fourth quarter of 2011. Revenue for the quarter ended Dec. 31, 2011, was $285.6 million compared with $289.0 million for the quarter ended Sept. 30, 2011, a decrease of 1.2%, and compared with $258.5 million for the quarter ended Dec. 31, 2010, an increase of 10.5%. For the quarter ended Dec. 31, 2011, Kforce reported net income of $7.1 million, versus $8.4 million for the quarter ended Sept. 30, 2011.

Kforce reported total revenue for the year ended Dec. 31, 2011, of $1.1 billion as compared with $990.8 million for 2010, an increase of 12.1%. Net income was $27.2 million, versus net income of $20.6 million for 2010.

In a conference call with investors, Kforce chairman and chief executive officer David L. Dunkel said, “Looking back on 2011, we believe that the staffing industry’s performance has been significantly different than in previous economic cycles. We continue to benefit from our clients’ desire for a flexible work force during the slow economic recovery.”

SimplyHired.com (02/07/12)

SimplyHired.com has released its February 2012 Employment Outlook highlighting national and local markets, as well as industry and employer trends. Nationwide, job openings increased slightly in the first month of 2012, up 1.5% month-over-month and 9.2% year-over-year. “The job market has stabilized a lot compared to a few years ago,” says Gautam Godhwani, chief executive officer of SimplyHired.com. “This month’s immediate increase in job openings following the holidays indicates that 2012 should be a great year for hiring.” Fifteen of 18 industries experienced job growth in January. Industries with significant month-over-month growth include nonprofit (27.9%), hospitality (17.0%), and legal (12.6%).

Team Health News Release (02/07/12)

Team Health Holdings Inc., a supplier of outsourced health care professional staffing and administrative services to hospitals and other health care providers in the U.S., on Feb. 7 announced results for its fourth quarter and full fiscal year 2011. Net revenue less provision for uncollectibles increased 17.4% to $462.0 million from $393.4 million in the fourth quarter of 2010. Acquisitions contributed 7.8%, new contracts, net of terminations contributed 6.1%, and same contract revenue contributed 3.5% of the increase in quarter-over-quarter growth in net revenue less provision. Reported net earnings were $13.3 million in the fourth quarter of 2011, compared with a net loss of $36.0 million in the same period of 2010.

Revenue less provision in the year ended Dec. 31, 2011, increased 14.9% to $1.75 billion from $1.52 billion in fiscal 2010. Same contract revenue contributed 4.0%, acquisitions contributed 5.1%, and new contracts, net of terminations contributed 5.9% of the increase in year-over-year growth in net revenue less provision. Reported net earnings were $65.5 million, compared to $6.8 million in 2010.

Wall Street Journal (02/08/12) Russell Gold

The U.S. economy is enjoying the fruits of a new energy boom, adding about 158,500 new oil and gas jobs over the past five years, and even more jobs in companies supplying the energy industry and in the broader service industry. The use of new drilling techniques to tap oil and gas in shale rocks far underground has been a major factor in the boom. While lower prices already have slowed new drilling for natural gas, energy companies have shifted their spending to shale wells that will provide oil. Even if gas prices stay low, overall employment is expected to continue rising, says John Larson, an economist with IHS Consulting.

President Barack Obama recently cited an industry study finding that development of shale gas will create more than 100,000 jobs by the end of the decade. For every new job working in the oil and gas sector, another four are supported by the energy supply chain and by workers spending more money on goods and services, says Timothy Considine, an independent economist who has worked on estimating job creation in the natural resources sector.

USA Today (02/08/12) Tim Mullaney

The U.S. Department of Labor recently reported a gain in job openings to 3.4 million at the end of December and a decrease in the unemployment rate to 8.3%. However, experts say the recovery is not as robust or broadly based as previous recoveries, citing figures that 1.1 million workers have stopped looking for employment and the number of people unemployed for more than six months has dropped only to 43% from 44% a year ago. Troy Davig, senior U.S. economist at Barclays Capital, says job opportunities are expanding for workers with particular skills.

There are fewer job openings in construction, manufacturing, and government as these sectors are hiring more slowly than others. In the professional and business services sector, Davig says there is a mismatch between workers seeking employment and the jobs available, as employers are seeking 3.6 workers for every 100 they have now but the number of workers hired fell to 787,000 in December from 845,000 in November. Over 33% of entrepreneurs polled by the National Federation of Independent Business in January said they have not found candidates with the right skills.

ABCNews.com (02/07/12) Mikaela Conley

Consumer Reports is warning against “mini-med” health care plans that offer limited benefits. “Mini-meds appeal to large employers in industries such as retail, food service, and temporary staffing,” says Nancy Metcalf, senior program editor at Consumer Reports.

Robert Zirkelbach of America’s Health Insurance Plans, the national trade association representing the health insurance industry, says, “For many seasonal, part-time, and temporary workers, these types of plans are their only source of affordable health care coverage.”

Wall Street Journal (02/08/12) Ben Casselman

Although the U.S. job market is showing signs of improvement, the churning process has slowed, with a new report showing a drop in the number of workers who quit their jobs in December to fewer than two million from a prerecession level of about three million per month. Churn usually is indicative of a strong economy, with workers leaving their jobs to accept another with higher pay and more responsibilities and allowing a new worker to take their place, but experts say people do not want to take a chance on a new job in the current economy. When employees do quit, companies are worried about the risks of hiring new workers and look first to fill the open positions with existing personnel. This means that new graduates, unemployed workers, and employees from other companies have fewer opportunities for employment, and the economy is less efficient when workers do not move to new jobs that are a better fit.

In the short term, University of Chicago economist Steven Davis says reduced churn will put a damper on the efforts of unemployed workers to find jobs, but the long-term consequences are unknown. However, experts say an improving economy means companies and workers will increase their appetites for risk.