NEW YORK (AP) â¿¿ Shares of staffing agencies and online job board companies slid after a government report showed there was barely any hiring last month.
The government said U.S. employers added just 18,000 net jobs in June, the smallest amount in nine months. The unemployment rate rose to 9.2 percent.
The report suggested that there would be no "sudden revival" in the economy going into the third quarter, said Gluskin Sheff economist David Rosenberg. That could hurt future job creation later this year.
Other measures pointed to weak hiring ahead. The average work week in June declined to 34.3 hours, from 34.4 hours. When companies are ramping up production or sales are increasing, they often demand more work from their existing employees. That's a step that typically comes before any hiring.Temporary employment also fell 12,000. Businesses generally hire more temporary workers before taking on permanent ones. Fewer openings mean companies have less of a need to post those openings on websites such as Monster.com. They also might not need services of firms that help companies fill their job openings. Shares of Monster Worldwide Inc., which owns jobs site Monster.com, slid 57 cents, or 3.8 percent, to $14.56 in afternoon trading. Shares of ManpowerGroup, a staffing company, fell $2.49, or 4.2 percent, to $56.13. Other recruiters also dropped. Kelly Services Inc. slid 60 cents, or 3.4 percent, to $16.90; SFN Group Inc. shed 25 cents, or 2.4 percent, to $10.37; Robert Half International Inc. lost $1.12, or 4 percent, to $26.68; On Assignment Inc. fell 37 cents, or 3.4 percent, to $10.42; TrueBlue Inc. dropped 45 cents, or 2.9 percent, to $14.95.
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