Staffing 360 Solutions Inc. (NASDAQ: STAF) a staffing firm with operations in the US and UK, reported the economic environment weighed on revenue growth in its third quarter ended Sept. 30, 2023. Revenue fell 5.5% in constant currency in the quarter. Perm staffing revenue declined, although US professional temporary staffing revenue edged up 0.6% year over year.

“Our third quarter results reflect the continued uncertainty that has been characteristic of the employment sector, with clients remaining cautious about their hiring needs and the economy,” CEO and President Brendan Flood said in a press release. “As a result, we are facing many of the same challenges as other staffing firms, especially in the area of light industrial.”

Flood noted that workers’ compensation costs and a weaker permanent placement/direct-hire market have contributed to softer margins.

The company has been catching up on quarterly financial reports after the Nasdaq first sent a letter on May 18, 2023, that it had not yet filed its Form 10-Q for the period ended April 1, 2023, according to a regulatory filing.

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Share price

Shares in Staffing 360 were down 2.1% to 39 cents as of 12:07 p.m. Eastern time today; they were 11.71% above their 52-week low.