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Kelly Services Reports 2nd Quarter Results

Kelly Services News Release (08/08/12)

Kelly Services Inc. has reported that revenue for the second quarter of 2012 totaled $1.4 billion, a 3% decrease compared with the corresponding quarter of 2011. Earnings from operations for the second quarter of 2012 totaled $23.8 million, compared with $21.3 million reported for the second quarter of 2011. Revenues from the Americas segment totaled $931 million in the second quarter, compared with $918 million reported for the same period in 2011.

Commenting on the second quarter results, Kelly Services president and chief executive officer Carl T. Camden stated, “Despite tepid economic growth in the U.S. and recessionary conditions across much of Europe, Kelly made positive strides in the second quarter. We increased our gross profit, improved our operating profit, and kept a tight lid on expenses—all while delivering solid, sustained growth in our outsourcing and consulting group and our higher-margin staffing businesses.”

Job Openings and Labor Turnover—June 2012

U.S. Bureau of Labor Statistics (08/07/12)

There were 3.8 million job openings on the last business day of June, little changed from 3.7 million in May, the U.S. Bureau of Labor Statistics reported on Aug. 7. The hires rate (3.3%) and separations rate (3.2%) were essentially unchanged in June.

Job openings were little changed in all industries and regions. The level of total nonfarm job openings in June was up from 2.4 million at the end of the recession in June 2009. The number of job openings in June (not seasonally adjusted) increased over the year for total nonfarm and total private. The number of job openings for government was little changed. Job openings increased over the year for several industries and the Midwest, Northeast, and South regions. The hires rate was little changed in all industries and regions. The number of hires in June was 4.4 million, up from 3.7 million at the end of the recession in June 2009. Over the 12 months ending in June 2012, hires totaled 51.3 million and separations totaled 49.6 million, yielding a net employment gain of 1.8 million.

Productivity in U.S. Rebounds as Employers Try to Curb Costs

Bloomberg (08/08/12) Alex Kowalski

U.S. productivity rose at a 1.6% annual rate in the second quarter, the U.S. Department of Labor reported today, as output of goods and services rose much faster than the amount of time employees worked. Second-quarter productivity was projected to rise 1.4%, according to the median forecast of 59 economists surveyed by Bloomberg News. DOL said output rose 2.0% in the April-to-June period, while hours worked increased at a slower 0.4% rate. That was down sharply from a 3.2% gain in hours worked during the first quarter. Unit-labor costs, meanwhile, slowed to a 1.7% increase from 5.6% in the first quarter. Hourly wages, after factoring out inflation, rose 2.6% to match the first-quarter gain. The drop in productivity at the start of 2012, pared with a slowdown in profits, may be prompting companies to focus on enhancing efficiency to curb costs, making a pickup in employment more difficult to spur.

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