Sector Snap: Analyst Sees Stagnant Jobs Market

HARTFORD, Conn. (AP) — The job market is likely to be stagnant until employers are confident that consumer spending has recovered sufficiently to fuel economic growth, an analyst said Thursday.

Analyst James Janesky of Stifel Nicolaus said in a client note he sees all staffing and employment-related companies unfavorably, "given what we believe could be the potential for a protracted period of stagnant employment growth and flattish demand for both online (and) offline recruitment services."

By one measure, consumer spending remains weak. Retailers on Thursday posted August sales declines as shoppers held back on back-to-school purchases and continued to focus on necessities. However, overall results came in ahead of analyst predictions.

Shares of online help-wanted service Monster Worldwide Inc. rose 46 cents, or 3 percent, to $15.87 in afternoon trading. Kelly Service Inc. fell 16 cents to $11.47 and Manpower Inc. rose 23 cents to $50.27. Robert Half International Inc. added a penny to $25.55.