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Temp firms’ revenue accelerates to median 10% growth: Pulse Report

February 04, 2019

US temporary staffing revenue growth rose a median 10% year over year in December, up from 7% in November, according to Staffing Industry Analysts’ Pulse Survey Report of staffing firms released Thursday.

“Total temp staffing revenue growth bounced back up in December and this acceleration was driven by robust growth reported by industrial, IT and marketing creative staffing firms,” SIA Research Analyst Sree Thiyagarajan said.

The latest report also found the net proportion of firms reporting an increasing trend in new orders rose to 27% in December from 23% in November but remains lower than the 12-month average of 46% for this metric.

In December, this metric was lower than its 12-month average for all four skill segment and industry segment categories the report tracks. Industrial staffing firms reported the lowest net percent of firms with increasing new orders since January 2017.

Median year-over-year growth accelerated in the following staffing segments in December compared to year-over-year growth in November:

  • Locum tenens: to 27% from 0%
  • IT staffing: to 11% from 3%
  • Travel nursing: to 6% from 1%
  • Marketing/creative: to 22% from 17%
  • Engineering/design: to 12% from 8%
  • Industrial staffing: to 8% from 5%

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

  • Life sciences (formerly clinical/scientific): to 10% from 21%
  • Legal: to 3% from 13%
  • Per diem nursing: to 4% from 13%
  • Allied healthcare: to 10% from 13%
  • Finance/accounting: to 2% from 4%
  • Office/clerical: to 2% from 3%

Median year-over-year revenue growth rose in direct hire to 18% from 10% in last month’s report.

Average sales difficulty decreased to 2.67 in December from 2.83 in November (on a five-point scale, with five being most difficult), while average recruiting difficulty decreased to 3.27 from 3.31.

Industrial and IT staffing firms reported a decrease in sales difficulty, while recruiting difficulty increased. For staffing firms serving the manufacturing industry, both average sales and recruiting difficulty levels decreased.

For healthcare staffing firms, the sales difficulty increased to the highest level ever reported at 3.00, while recruiting difficulty decreased.

The Pulse Survey also covers metrics by company size — including median year-over-year revenue growth, bill rates, new order trends, and sales and recruiting difficulties. US temporary staffing revenue rose a median 15% year over year in December for survey respondents with $10 million or less in US staffing revenue; 10% for those with $11 million to $200 million; and 4% at firms with more than $200 million in revenue.

Pulse Survey results are based on a survey of US staffing firms. Information for the month of December was submitted by individuals from 140 staffing companies. Corporate members of SIA can view a high-level summary of the report, and the full report is available to participants.

Starting in 2019, SIA reduced the frequency of Staffing Industry Pulse Survey to six times per year to save time for staffing firms and to provide more in-depth insights on industry trends. The next SIA Pulse survey will be in March, and there is no cost to participate.