Command Center Inc. (NASD: CCNI) reported third-quarter revenue edged down 1.5%. The Denver-based industrial staffing provider attributed the decrease in large part to higher-than-normal turnover in sales positions within the last year due to increased competition in the labor market.

Gross margin also narrowed to 24.5% in the third quarter from 26.9% in the year-ago quarter. Command Center reported the decrease was the result of increases in workers’ compensation cost and field team member wages and related payroll taxes; however, those increased costs were partially offset by relative decreases in state unemployment expense.

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“In conjunction with the low unemployment rate, we’re also experiencing increased competition and higher wages for quality temporary workers in some markets,” said President and CEO Rick Coleman. “This also contributes to higher recruiting and onboarding costs. We’re addressing these challenges, and I’m encouraged by our progress in revitalizing the organization. We’ve raised the bar for branch-level leadership, many of whom are new to the company, and we’ve set clear expectations for their performance.”

Share price and market cap

Command Center shares were down 14.29% to $4.20 at 12:13 p.m. Eastern time today; the company had a market cap of $23.91 million, according to FT.com.