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Staffing Pulse report: Temp revenue grows median 4% in December, down from 5%

February 01, 2018

US temporary staffing revenue rose a median 4% year over year in December — a slight deceleration from November’s 5% rate — among staffing firms taking part in Staffing Industry Analysts’ monthly Pulse survey.

“Most temporary staffing segments reported deceleration in median revenue growth rates in December,” Research Analyst Sree Thiyagarajan said. “In another sign of softness, both the healthcare and IT staffing segments observed a drop in the net proportion of firms reporting an increase in bill rates and new orders.”

Median year-over-year revenue growth decelerated in the following staffing segments in December from November:

  • Travel nursing: to 3% from 16%
  • Locum tenens: to 3% from 13%
  • Per diem nursing: to 6% from 10%
  • Marketing/creative: to 8% from 10%
  • IT: to 4% from 6%
  • Office/clerical: to 1% from 2%
  • Engineering/design: to 12% from 13%

Median year-over-year revenue growth stayed the same for the industrial and finance/accounting staffing segments, both at 4%, as well as in allied healthcare at 6%.

On the other hand, legal staffing firms reported robust growth in median year-over-year revenue, accelerating to 13% in December from negative 2% in November. In addition, clinical/scientific staffing firms also reported healthy year-over-year revenue expansion with 12% median growth, up from 4% in November. December’s report also began covering detailed segment-specific metrics for legal and clinical/scientific staffing.

The December report also found the net proportion of firms reporting an increasing trend in new orders fell to 27% in December, down from 34% in November and below the last 12-month average of 38% for this metric. The net proportion of firms reporting an increase in new orders was slightly higher than its 12-month average for staffing firms serving the healthcare industry, while it was lower for industrial and IT staffing firms as well as for staffing firms serving the manufacturing industry.

Average sales difficulty rose to 2.87 in December from 2.77 in November (on a five-point scale, with five being most difficult), while average recruiting difficulty edged down to 3.09 from 3.11 in the survey overall. Healthcare staffing firms and firms supplying the manufacturing industry reported an increase in difficulty levels for both sales and recruiting. Industrial staffing firms reported an increase in recruiting difficulty level, while sales difficulty remained the same. IT staffing firms reported an increase in sales difficulty level, while recruiting difficulty decreased.

Pulse Survey results are based on a monthly survey of US staffing firms. Data from the month of December was submitted by individuals from 149 staffing companies. SIA corporate members can view a high-level summary of the report, and the full report is available to participants.

It’s free to take part, and the next Pulse Survey is currently underway. Participate now by selecting this link.