This morning’s employment report indicated that private payrolls grew by 159,000 in October. The Bureau of Labor Statistics also revised jobs growth higher for both August and September.

Temporary staffing services have been a major component of these employment gains, accounting for 35,000 jobs in October and 23,000 in both August and September. That means that roughly one in five jobs created in the US over the past three months has involved temp workers. The total number of temp placements is approaching levels last seen in late 2008; if this recent trend holds, temp staffing would be back to its pre-crisis levels by early 2011.

This bodes well for the temporary-staffing industry and our recent recommendation, True Blue (NYSE: TBI), a leader in blue-collar staffing services. The stock has run up significantly over the past two days, but we see more upside ahead.

Technically, the stock’s next hurdle will be its 52-week high of $17.25. But given the secular and cyclical improvements in the temporary-staffing market and True Blue’s recent earnings release, we expect the stock to break through this upper bound and re-test levels last seen in 2007. The stock’s all-time high is near $28, so there’s plenty of upside ahead.

We’re boosting our buy target on True Blue to 16.50 and raising the recommended stop-loss from 11.50 to 12.50.

In addition, we’re boosting our buy target on mining giant Vale (NYSE: VALE) to 34 and raising the recommended stop-loss from 23.25 to 25.25.