Next week, TMP Worldwide reports its first-quarter results. Not only is it the most popular career site, with four times more usage than its closest competitor, but it is profitable. The importance of holding the top spot in the career site sector can't be overstated, because employers and potential employees want the largest audience possible for job listings and resum s. Tight labor markets and the Internet are driving growth in this sector. Qualified employees have become a scarce resource, as companies grow businesses quickly.
Businesses are unwilling to leave their futures to chance, putting quality talent at a premium.
The Internet has created an ideal platform for employers and job seekers to find each other. Online sites help automate the recruiting process, which improves the quality of information and cuts costs. Overall, this sector seems poised for significant growth over the next few years. Trading at roughly 25 times 2002 earnings, TMP Worldwide comes at a reasonable price, considering it's the market leader. The career sites market looks big enough for more than one company to succeed and it continues marching toward profitability.