CSP OCTOBER 2010

The Palmer Forecast TM

1

2

If you sometimes feel like this, you are not alone…

3

Recessions and Jobs

4

Temp Help Vs. Recession

5

Temp Help Vs. Non Farm Jobs

6

Accuracy of the Palmer forecast

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 20101500

1700

1900

2100

2300

2500

2700

Temporary Employees in Thousands

ForecastActual

7

Recent Non Farm Trends

Robert W. Baird & Co.

8

All the growth – Health Care /ED/Govt

Robert W. Baird & Co.

9

Temp Vs. Perm Jobs

Robert W. Baird & Co.

10

The Future

?

11?

12

What will happen in the future?

Jobs areCreated at2% GDP Growth

4%

3%

2%

1%

*

* **

* **

*

4Q08

-6%

Need 2% GDP Growth to create temp jobs !

The Growth Zone

20%

10%

0% *

*

* *

*

**

*

4Q08

-30%

GP Temp Growth Forecast 2011

Uneven Growth

15

Now What?

16

Segment Growth Projections

0 100 200 300 400 500 600 700 800

Home Health Care Services

Computer Systems

Colleges, Universities and Professional Schools

Limited-Service Eating Places

Offices of Physician

Local Government

Elementary and Secondary Schools

General Medical

Employment Service

Management, Scientific, Technical Consulting

BLS

17

MarginsGross Margins Trend

Company 2006 2007 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 2Q10Adecco SA 17.30% 18.90% 18.10% 19.30% 18.00% 18.20% 18.50% 17.80% 17.80%Manpower Inc. 17.90% 18.80% 18.00% 19.50% 18.10% 20.80% 18.30% 18.30% 17.40%Randstad Holding (1) 19.90% 20.80% 20.50% 20.90% 20.90% 20.70% 20.10% 19.70% 19.0%Kelly Services Inc. 16.30% 17.50% 18.00% 17.70% 17.60% 17.60% 16.80% 16.70% 15.80%Robert Half 42.20% 42.60% 41.70% 42.20% 41.70% 40.70% 35.70% 35.30% 37.70%Spherion 23.30% 23.70% 22.20% 23.10% 21.90% 20.70% 19.50% 20.30% 20.5%MPS Group 27.60% 28.70% 28.60% 29.00% 28.40% 28.60% 26.90% 27.20% N/ATrue Blue 32.10% 31.90% 30.40% 29.80% 29.70% 29.30% 27.90% 29.50% 26.60%AMN Healthcare Services 26.70% 26.00% 26.40% 26.40% 25.70% 25.70% 25.60% 27.00% 27.60%Kforce 34.70% 35.90% 34.10% 35.80% 34.50% 33.50% 31.20% 34.40% 31.90%

Average 25.80% 26.50% 25.80% 26.40% 25.70% 25.60% 24.10% 24.60%  23.8%

Source: Staffing Industry Analysts, Inc. and company reports and GPalmer(1)Randstad completed the acquisition of Vedior in May 2008. Randstad's gross profit margin is on a pro

forma basis.

18

Don’t Forget the Workforce !

19

Unemployment by Education

0

2

4

6

8

10

12

14

J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M

1999 2000 2001 2002 2003 2004 2005 2006 2007 2007 2008 2009

Umemployment Rate Less than High School College Graduates

17.1%

9.6%

4.5%

20

Workforce by Age

Growth in over 45 yrs

Decline in younger workers

21

A Sprint or Marathon?

Gears of Opportunity

Clients/Competition

/Change

Aging workforc

e

Shifts in the

Economy

23

Quick Tips

Raise prices in Jan 2010 – SUI and WC will increase

Stay close to Health Care Reform / ASA/CSP

If you are thinking about selling consider an ESOP

Consider Off Shore Recruiting solutions, i.e. PSG www.psgglobalsolutions.com Brian Cotter(310) 566-7436

24

25

Thank You!

www.GPalmerandAssociates.com949 232 7101