Paychex's Earnings To Benefit From Improving Employment Scenario, However Margins May Decline

In December 2013 and February 2014, the unemployment rate was 6.7% and in January 2014 it was 6.6%. Additionally, the participation rate improved slightly since December 2013, indicating a renewed confidence in the working population towards the job environment in the U.S. We believe that Paychex's third quarter result is set to benefit from these trends.