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Temp revenue speeds up to median 9% in August, recruiting difficulty at high for industrial segment: Pulse

October 01, 2018

US temporary staffing revenue growth accelerated to a median 9% year over year in August from 7% in July, according to Staffing Industry Analysts’ Pulse report survey of staffing firms, released Friday.

“August’s acceleration in median year-over-year growth for temporary staffing revenue is mostly driven by healthcare and finance accounting staffing,” SIA Research Analyst Sree Thiyagarajan said. Two of the four healthcare staffing segments showed double-digit growth in revenue from prior year.

Average sales difficulty increased to 2.76 in August from 2.66 in July (on a five-point scale, with five being most difficult), and average recruiting difficulty rose to 3.35 in August from 3.28 in the survey overall. Industrial staffing firms reported an increase in both sales and recruiting difficulty, with the recruiting difficulty reaching 4.03, the highest level ever observed in this segment.

For staffing firms serving the healthcare industry, average sales difficulty decreased, while recruiting difficulty increased. For IT staffing firms and staffing firms serving the manufacturing industry, both average sales difficulty and recruiting difficulty levels increased.

Median year-over-year revenue growth accelerated in the following staffing segments in August from July:

  • Allied healthcare: to 16% from 5%
  • Locum tenens: to 29% from 20%
  • Finance/accounting: to 11% from 5%
  • Marketing/creative: to 25% from 21%
  • Travel nursing: to 8% from 6%

Median year-over-year revenue growth decelerated in the following staffing segments in August from July:

  • Clinical/scientific: to 5% from 22%
  • Legal: to 15% from 27%
  • Engineering/design: to 7% from 15%
  • Per diem nursing: to 5% from 9%
  • IT staffing: to 9% from 11%
  • Industrial staffing: to 4% from 6%

Median year-over-year revenue growth stayed the same last month for office/clerical at 5%.

Median year-over-year revenue growth edged down in direct hire to 16% from 17%; in retained search, it fell to 12% from 18%.

The August report also found the net proportion of firms reporting an increasing trend in new orders rose to 51% in August, up from 46% in July and higher than the last 12-month average of 44% for this metric. In August, this metric was higher than its 12-month average for IT staffing firms and staffing firms serving the healthcare industry; it was roughly the same as its average for industrial staffing firms and staffing firms serving the manufacturing industry.

The Pulse survey also now 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 17% year over year in August for survey respondents with $10 million or less in US staffing revenue; 9% 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 monthly survey of US staffing firms. Information from the month of August 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.

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