Average gross margin increased across publicly traded staffing firms between 2021 and 2022, according to research by Staffing Industry Analysts.

The report, Gross Margin and Bill Rate Trends, found gross margin rose by an average of 107 basis points year over year to an average gross margin of 27.9% in 2022 at a basket of 15 publicly traded staffing companies. That follows an average increase of 69 basis points between 2020 and 2021.

The increase largely reflected favorable changes to business mix, according to the report. “For example, Manpower and Robert Half both indicated gross margin expansion reflected greater permanent placement business, with Robert Half additionally citing higher conversion revenues,” the report said.

Average gross margins at publicly traded staffing firms had remained relatively stable at about 25% between 2006 and 2020.

The report included in gross margin any nonstaffing business such as outplacement at the 15 firms tracked.

Corporate members can download the full report, Gross Margin and Bill Rate Trends.