Saturday, September 09, 2006

Staffing Companies: Poised to Make Money on the Aging Workforce?

Morningstar.com has taken a look at how an older workforce might create some investing opportunities in the staffing industry. Citing a report from IDC, a global provider of industry information, that about 19% of the entire U.S. workforce holding executive, administrative, and managerial positions will retire in the next five years, Morningstar suggests that this might bode especially well for executive search firms.

Among other things, Morningstar suggests that the aging workforce may cause companies to rely more heavily on firms with strong networks of relationships and to pay more for talent, given supply constraints.

Source: Morningstar.com "The Inside Scoop on Staffing Companies" (August 25, 2006)

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