This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Staffing Stocks Tumble on Health Care Mandate Delay

Stocks in this article: RHITBIMANASGN

NEW YORK ( TheStreet) - Staffing agencies tumbled Wednesday after the White House announced a healthcare mandate aimed at employers will be postponed.

Robert Half International (RHI ), Manpower (MAN ), TrueBlue (TBI ), and On Assignment (ASGN )fell following the announcement. Robert Half led the slump losing 5%, finishing the day at $31.65. Manpower stumbled 1.2% to close at $54.66.

The Patient Protection and Affordable Care Act calls for employers with 50 or more employees to provide health benefits for full employees. Employers who fail to comply with the legislation will be fined $2,000 per worker. The Obama administration has been expected to begin enforcing the act in 2014, but has delayed it until 2015.

"Many investors have purchased temporary staffing stocks during the last nine months with the view that the employer mandate would drive increased demand for temporary staffing services, particularly from small businesses that were close to the 50-employee threshold," wrote analysts with William Blair in a report.

Investors expected the upcoming enforcement would lead small and medium businesses to employ the services of staffing agencies, in hopes of avoiding the health care obligations placed on them by the federal government. Analysts still see the mandate eliciting this scenario when it goes into effect, but the delay has removed the necessity for investors to move on the shares.

The staffing industry has grown in the United States and is deemed stable for the most part. The sector has seen "7%-8% growth in the industry as measured by the BLS's last monthly employment report and Staffing Industry Analysts' Pulse survey of staffing firms for the month of June," wrote the analysts led by Timothy McHugh.

Robert Half International has seen 15% growth this year to date, posting gains for the last three years. Robert Half, Manpower, and On Assignment are set to outperform, according to William Blair.

-- Written by Robert Arenella in New York

>To contact the writer of this article, click here: Robert Arenella.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,810.06 +91.06 0.51%
S&P 500 2,063.50 +10.75 0.52%
NASDAQ 4,712.97 +11.1030 0.24%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs