Revenue rose 8.0% at GEE Group Inc. (NYSEAMERICAN: JOB) in its fiscal third quarter ended June 30. Direct-hire revenue jumped 45.2% year over year, while contract staffing revenue was up 1.7% year over year.

“We continue to see growing opportunities for the company as the flexible, on-demand work force needs of corporate America remain strong,” Chairman and CEO Derek Dewan said. “This labor environment bodes well for the company and the staffing industry as a whole.”

Industrial staffing revenue rose 9% year over year in the third quarter to $4.1 million.

Meanwhile, GEE Group’s professional staffing revenue rose 0.8% year over year while professional staffing direct-hire revenue jumped 45.2%.

Revenue by segment

“The large increases in direct hire revenues were driven by several factors, including continued volatility in the labor markets which created a stronger demand environment due to shortages in the workforce of highly skilled personnel,” according to the company. “This drives businesses to fill many open positions with permanent employees rather than contract employees.”

GEE Group also noted the larger proportion of fully remote workers is causing many employers to make permanent hires instead of using contractors in order to maintain direct access and control for purposes of security over their networks and other assets.

Share price and market cap

Shares in GEE Group were up 5.46% to 63 cents as of 11:24 a.m. Eastern time; they were 2.77% below their 52-week high, according to FT.com. The company had a market cap of $63.0 million.