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Temp revenue growth decelerates to 7%: Pulse report

December 21, 2018

US temporary staffing revenue growth decelerated at a median 7% year over year in November from October, falling from a three-year high of 11% in October, according to Staffing Industry Analysts’ Pulse Survey Report of staffing firms released Thursday.

The latest report also found the net proportion of firms reporting an increasing trend in new orders dropped to 23% in November from 51% in October — this is the lowest level reported since November 2016 and lower than the 12-month average of 46% for this metric.

In November, this metric was the same as its 12-month average for healthcare staffing firms, while it was lower than its 12-month average for industrial and IT staffing firms and staffing firms serving the manufacturing industry. Industrial staffing firms and staffing firms serving the manufacturing industry reported the lowest net percent of firms with increasing new orders since January 2017.

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

  • Locum tenens: to 0% from 15%
  • Travel nursing: to 1% from 10%
  • IT staffing: to 3% from 10%
  • Industrial staffing: to 5% from 10%
  • Finance/accounting: to 4% from 7%
  • Engineering/design: to 8% from 10%
  • Office/clerical: to 3% from 4%

Median year-over-year revenue growth accelerated in the following staffing segments in November from October:

  • Clinical/scientific: to 21% from 8%
  • Per diem nursing: to 13% from 10%
  • Allied healthcare: to 13% from 10%
  • Legal: to 13% from 10%
  • Marketing/creative: to 17% from 15%

“Double-digit revenue growth reported by clinical/scientific, marketing/creative and legal staffing firms indicate strong demand for talent in those segments,” SIA Research Analyst Sree Thiyagarajan said.

Median year-over-year revenue growth rose in direct hire to 10% from 2% and in retained search to 33% from 27%.

Average sales difficulty increased to 2.83 in November from 2.60 in October (on a five-point scale, with five being most difficult), while average recruiting difficulty decreased to 3.31 from 3.46 in the survey overall.

Industrial and IT staffing firms reported an increase in sales difficulty, while recruiting difficulty decreased. The average sales difficulty for IT staffing firms rebounded up to 3.00, the highest level reported so far this year, from October’s record low of 2.44.

For staffing firms serving the healthcare and manufacturing industry, both average sales and recruiting difficulty levels increased. The sales difficulty for manufacturing staffing firms reached the highest level seen this year at 2.87.

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 5% year over year in November for survey respondents with $10 million or less in US staffing revenue; 9% for those with $11 million to $200 million; and 3% at firms with more than $200 million in revenue.

Pulse Survey results are based on a monthly survey of US staffing firms. Information for the month of November was submitted by individuals from 129 staffing companies. Corporate members of SIA 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.