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UPDATE 1-Dutch staffing sector growth accelerates

Published 11/02/2010, 06:00 AM
Updated 11/02/2010, 06:04 AM

* Hours worked in sector up 10 percent in 4 weeks to Oct. 10

* Revenue in sector up 10 percent in 4 weeks to Oct. 10

* ABU says staffing grew for the sixth period in a row

* Staffing still lagging Belgium, Germany -analyst

* Brunel shares up 3.6 percent, Randstad flat, USG up 0.5 percent

(Adds details, analyst comments, background)

AMSTERDAM, Nov 2 (Reuters) - The Dutch staffing market grew for the sixth period in a row, as hours worked and sales each grew 10 percent from a year earlier in the four weeks to Oct. 10, staffing agency ABU said on Tuesday, confirming expectations from temping companies Randstad and USG People.

ABU figures are closely watched by analysts to see how the Dutch staffing market is growing, and what this will mean for the staffing companies' growth prospects.

"The numbers are positive. We're seeing further acceleration but we had hoped for a little bit more as we are still lagging other countries such as Belgium, Germany and France," SNS Securities analyst Frank van Wijk said.

Van Wijk, who said the Netherlands is traditionally a later-cyclical country, said with the administrative sector flat year-on-year this indicated it was starting to turn the corner and could prove a positive for USG People.

ABU said in a statement staffing market revenue in the four weeks till Oct. 10 grew 10 percent compared with the same period last year. Sales grew 9 percent in the preceding period.

Temp agency Randstad, the Netherlands' biggest in terms of sales, said last week positive third-quarter trends had continued into October, while USG People also said improvement of Dutch sales growth continued in that month.

But Dutch staffing company Brunel's third-quarter operating profit missed estimates on Tuesday and it said fourth-quarter growth in the Netherlands would be limited.

Brunel shares were up 3.6 percent, while USG People shares rose 0.5 percent and Randstad shares were flat in a slightly positive Amsterdam market.

Dutch staffing sector sales started growing again in May after two years of declines, and growth has since hovered between 4 and 10 percent. (Reporting by Bate Felix; Editing by Hans Peters)

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