Religion

No slowdown in temp staffing; +11% YoY in July

Temp growth still strong
14,100 temps were added MoM (+0.6%) on a SA basis, with MoM growth roughly in line with thelast 3 months. Temps were 9% of incremental jobs created in July (vs ~33% in June) and the temp penetration rate is 1.91%, up 1pt in July and up 10bp since December.Based on our channel checks and 2Q results, we had expected a slowdown in temp staffing growth after what we believed was an uncertainty-driven acceleration in temp growthover the last few months. Our favorite US-centric idea is ASGN while MAN is our favorite staffing idea overall due to what is already priced into the stock, in our view.Temp growth stable YoY at +10.9% in July vs +10.6% in June
Temp volumes (number of temps at work) were stable in July at +10.9% YoY (not seasonally adjusted) inJuly vs +10.6% in June, +9.0% in May and +7.9% in Apr. Comps have been easing (1.4pts easier in July) since Feb but now they are stable over the next two months.

MoMtemp growth, not SA, underperforming the 20-yr average
From this morning's Employment Report, MoM temp volumes, not seasonally adjusted, were -1.7% in July versus a20-year non-recession avg. of -0.1%. This is the second month of underperformance versus the average after outperformance in May.

This month we will not publish our Monthlydue to the recent 2Q12 results.
|Figure 1: YoY Temp volume growth, not seasonally adjusted |
|[pic]|
|Source: Bureau of Labor Statistics and Deutsche Bank |