11th Annual Employment Study reaffirms Southland recovery.

IRVINE, Calif.--(BUSINESS WIRE)--Jan. 8, 1996--Sustained momentum in the hiring of office personnel is expected to continue into 1996, according to the results of the 11th Annual Employment Study commissioned by Irvine-based Thomas Staffing, a leading Southern California staffing services company.

According to the research, 19% of the companies surveyed expect to increase their hiring of full-time employees in the first half of 1996. Only 6% anticipate a decrease.

"This 13% increase in net hiring strength represents an indication of continued economic growth for Southern California," explained Gene C. Wilson, president of Thomas Staffing. "It is somewhat less than 95 but we believe this to be part of a normal recovery curve." Wilson continued, "Behind last year, 1996 is the second strongest year in the past five."

Wilson sees expected growth in the permanent work force, a positive 1996 sales outlook, along with growth in a key job category, and the willingness to add temporary workers as indicators that reaffirm the steady recovery of the Southland's economy.

Interviews with human resource executives at 1,054 randomly selected companies in the counties of Los Angeles, Orange, San Diego, Riverside, San Bernardino and Kern were conducted during the fourth quarter of 1995 by the independent research firm Market Research Associates.

Orange and San Diego counties lead the pack

The highest projected need for permanent office employees came from Orange and San Diego counties. San Diego projected a 17% net increase in hiring strength, Orange 16% and Kern county 14%. Los Angeles and San Bernardino counties each projected a net increase of 11%, and Riverside county projecting 9%.

"The types of businesses headquartered in a county have a lot to do with its net hiring strength," observed Wilson, "Orange and San Diego counties have a high concentration of firms in growth industries like high tech, bio-med and health care."

"In terms of economic recovery, Kern county, in 96, is where its neighbors were a year ago," Wilson continued. "This may be the positive ripple effect from the rest of the Southland."

"Increased Sales" vs. "The Economy"

"Increased sales" is now perceived as the primary factor affecting employment growth. "It appears that as the recovery continues, companies tend to relate to their internal sales trends," concluded Wilson. This is in contrast to previous years when external factors, like the economy, were cited as primarily affecting employment.

"This year, more than ever," Wilson continued, "employers are responding to a positive sales outlook by adding staff, in some cases permanent, in other cases temporary."

Customer Service Reps still hot

The study reported a 14% net increase in the anticipated hiring of customer service representatives, continuing the trend from last year's survey. The increase in hiring strength exceeded that of any other category considered.

Growth in customer service reps seems to be driven by companies in the banking, financial, insurance and business service sector. Of all the counties surveyed, Orange county projected the highest net increase.

Need for temporary workers also reaffirms recovery

Southern California companies continue to report a willingness to utilize temporary office workers in the first half of 1996. While large companies (those with 250 or more employees) still view temporary workers primarily in the traditional role of sick leave and vacation replacements, smaller companies (those with 10-49 employees) are looking at temporary workers as a contingency work force for peak demand periods.

According to Wilson, "The ability to quickly expand and contract the work force to meet sales and customer demands is crucial to improving profitability and maintaining a competitive advantage with today's economic realities."

Thomas Staffing (formerly known as Thomas Temporaries) is a wholly owned subsidiary of Personnel Group of America Inc., a diversified staffing services company listed on the New York Stock Exchange (NYSE:PGA).

Note to Editors: Comprehensive graphs are available upon request.

CONTACT: Thomas Staffing Services Inc.

Gene C. Wilson, 714/261-5400