Sustained Moderate Job Growth Ahead - Kelly Services
Kelly Services Advance Comment on Unemployment Rate Announcement
TROY, Mich., Aug. 5 -- The following commentary by Terence Adderley, chairman and chief executive officer, and Carl Camden, president and chief operating officer of global staffing company Kelly Services, Inc., is offered in advance of the July unemployment rate announcement due Friday from the U.S. Department of Labor. In June, the unemployment rate remained at 5.6 percent, and the economy gained a reported 112,000 jobs.
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"Although the economy is recovering nicely, it is not as robust as some past recoveries have been," said Adderley. "Across many industries, including staffing, expectations are now being adjusted downward to reflect a more modest economic recovery over the next few quarters. Nevertheless, this is still a good, solid recovery. Job creation is strong and earnings are improving. On the positive side, this may result in a longer, more sustainable recovery," he said.
Camden believes the economy is settling into an extended period of moderate job growth. "Demand for office and light industrial staffing, which often is reflective of overall economic conditions, continues to be strong," he said. "In addition, conversions from temporary to permanent jobs also continue to rise, which augers well for continued employment growth overall. Demand for all credentialed professionals remains solid, led by the healthcare, legal, engineering and scientific professions. Information technology and telecom continue to be hot, along with our direct recruitment business," Camden said.
"Despite any occasional softness we may see in one month's employment numbers, the bigger picture shows good, steady job creation in the months ahead," Camden noted. "In fact, our economy is showing impressive resilience amid the ongoing geopolitical uncertainty."
About Kelly Services
Kelly Services, Inc. (Nasdaq: KELYA, KELYB) is a Fortune 500 company headquartered in Troy, Mich., offering staffing solutions that include temporary services, staff leasing, outsourcing, vendor on-site and full-time placement. Kelly serves 200,000 customers through 2,500 company owned and operated offices in 26 countries. Kelly provides employment for nearly 700,000 employees annually, with skills including office services, accounting, engineering, information technology, law, science, marketing, light industrial, education, health care and home care. Revenue in 2003 was $4.3 billion. Visit http://www.kellyservices.com .
SOURCE Kelly Services, Inc.
CONTACT: Bob Doetsch of Kelly Services, +1-248-244-5362
Web site: http://www.kellyservices.com
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