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Temp revenue grows median 6% in January; new orders at highest level since 2015: SIA report

March 02, 2018

US temporary staffing revenue rose a median 6% year over year in January — an acceleration from 4% in December and 5% in November — among staffing firms taking part in Staffing Industry Analysts’ monthly Pulse survey.

“January was a promising month for the industrial and IT segments, as both showed a bounce-back in median year-over-year revenue growth rates as well as decreases in reported sales difficulty,” SIA Research Analyst Sree Thiyagarajan said.

Median year-over-year revenue growth accelerated in the following staffing segments in January from December:

  • Per diem nursing: to 17% from 6%
  • IT: to 10% from 4%
  • Industrial: to 9% from 4%
  • Legal: to 17% from 13%
  • Office/clerical: to 3% from 1%
  • Travel nursing: to 5% from 3%
  • Locum tenens: to 5% from 3%
  • Allied healthcare: to 7% from 6%

Median year-over-year revenue growth decelerated in the marketing/creative staffing segment to 3% from 8%, and in the clinical/scientific staffing segment to 10% from 12%. Median year-over-year revenue growth stayed the same for the engineering/design and finance/accounting staffing segments, at 12% and 4% respectively.

The January report also found the net proportion of firms reporting an increasing trend in new orders jumped to 54% in January, up from 27% in December and the highest level reported since July 2015. In January, the net proportion reporting an increase in new orders was higher than its 12-month average for IT staffing firms, and staffing firms serving the healthcare and manufacturing industry, while it was slightly lower for industrial staffing firms.

Average sales difficulty fell to 2.54 in January from 2.87 in December (on a five-point scale, with five being most difficult), while average recruiting difficulty fell to 3.05 from 3.09 in the survey overall — the lowest levels since February and January 2016, respectively. Healthcare and industrial staffing firms and firms supplying the manufacturing industry reported a decrease in difficulty levels for both sales and recruiting. IT staffing firms reported a decrease in sales difficulty, while recruiting difficulty increased. Industrial staffing firms reported the lowest sales difficulty since June 2015 at 2.38.

Pulse Survey results are based on a monthly survey of US staffing firms. Data from the month of December were submitted by individuals from 142 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.