Editor's Note: This article is part of Inc.'s weekly report on business niches in partnership with financial information company Sageworks

Despite a slowly recovering U.S. labor market, employment services companies such as recruiting firms and temp agencies are among the fastest growing private industries in the country.

During the 12-month period ended August 21, employment services companies grew revenue at a rate of nearly 15 percent from the previous year, according to a recent analysis by financial information company Sageworks. Not only are these companies growing revenues, they're are also turning a profit. After a drop in net profit margin between 2009 and 2011, this profitability measure has increased during the past year to 5 percent.

Although the Bureau of Labor Statistics has reported positive job growth during the past few months, the employment situation remains volatile, and job growth is still reeling from the recession. In the words of Federal Reserve Chair Janet Yellen, “the labor market has yet to fully recover.”

“In a time when unemployment may still be unsteady, it’s good to see these companies doing well,” says Sageworks analyst Jenna Weaver. “Their livelihood fluctuates on U.S. firms’ appetite for hiring. That they’re seeing revenues increase consistently may be a good sign for the labor markets in the coming year.”

Still, Weaver says, this appetite for hiring, as reflected in the strong revenue growth from employment agencies, may be related to part-time jobs rather than full-time high paying roles.

“As has been reported extensively, a lot of the jobs added over the past year have been part-time,” she says. “The quantity of jobs appears to be headed in the right direction, but the quality remains a question mark.”

Large businesses rely on these agencies when staffing their companies. In the 2013 year, corporations reportedly spent $27 billion on hiring services. According to the Houston Chronicle, there is minimal upfront cost in launching staffing agencies, which could be of great interest to both entrepreneurs and startup companies.

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