US temporary staffing revenue rose a median 1% year over year in July among staffing firms taking part in Staffing Industry Analysts’ monthly Pulse survey. This is the lowest growth level reported since June 2016.

“Year-over-year median revenue growth rates decelerated across virtually all skill segments in July,” Research Analyst Sree Thiyagarajan said. “We will be closely watching the results reported for August to see whether the deceleration represents a blip or whether it constitutes a larger trend.”

The net proportion of firms reporting an increasing trend in new orders fell to 32% in July from 51% in June. The net proportion of firms reporting an increase in new orders declined in three categories — industrial, manufacturing and IT — but increased moderately in healthcare. The metric was lower than its 12-month average for industrial staffing firms and firms serving the manufacturing industry, unchanged for staffing firms serving the healthcare industry, and slightly higher than the 12-month average for IT staffing firms.

Median year-over-year revenue growth decelerated in the following staffing segments in July from June:

• Legal: to -29% from -1%
• Clinical/scientific: to 2% from 10%
• IT: to 2% from 10%
• Industrial: to -1% from 6%
• Allied healthcare: to 8% from 15%
• Per diem nursing: to 11% from 17%
• Office/clerical: to 0% from 5%
• Travel nursing: to 9% from 14%
• Locum tenens: to 13% from 18%
• Marketing/creative: to 0% from 4%
• Engineering/design: to 5% from 6%

Median year-over-year revenue growth was unchanged for the finance/accounting staffing segment at 0%.

The report also found direct-hire revenue growth fell to a median year-over-year expansion rate of 5% in July from 11% in June.

Average sales difficulty edged up to 2.80 in July from 2.76 in June (on a five-point scale, with five being most difficult), while average recruiting difficulty edged up to 3.34 from 3.29 in the survey overall. IT staffing firms reported a decrease in difficulty levels for both sales and recruiting. For firms supplying the manufacturing industry, average sales difficulty level decreased, while recruiting difficulty increased. Industrial staffing firms and firms supplying the healthcare industry reported an increase in difficulty levels for both sales and recruiting.

Pulse Survey results are based on a monthly survey of US staffing firms. Data from the month of July was submitted by individuals from 137 staffing companies. Report highlights are available online.

The next Pulse Survey is currently underway. Participate now by selecting this link.