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Temp staffing keeps momentum, median revenue up 6%

June 01, 2017

US temporary staffing revenue rose a median 6% year over year in April among staffing firms taking part in Staffing Industry Analysts’ monthly Pulse Survey, the same rate as reported in March.

“In April, temporary staffing overall continued to hold the momentum with a median 6% year-over-year revenue growth rate, although growth varied by skill segment,” Research Analyst Sree Thiyagarajan said. “Modest revenue growth and a lower net percent of firms with increasing bill rates indicated a slower month for IT staffing. In contrast, healthcare staffing firms continued to report robust expansion, with all four sub-segments indicating double-digit median revenue growth.”

The net proportion of firms reporting an increasing trend in new orders fell to 38% in April from 48% in March — which was the highest level reported since the metric reached 53% in October 2015

Median year-over-year revenue growth accelerated in the following staffing segments in April from March:

  • Travel nursing: to 18% from 17%
  • Per diem nursing: to 16% from 15%
  • Allied healthcare: to 11% from 10%
  • Legal: to 1% from 0%

Median year-over-year revenue growth decelerated in the following staffing segments in April from March:

  • Industrial: to 4% from 6%
  • IT: to 3% from 5%
  • Locum tenens: to 17% from 21%
  • Finance/accounting: to 4% from 6%
  • Engineering/design: to -5% from 1%
  • Clinical/scientific staffing: to -1% from 2%
  • Marketing/creative: to 3% from 7%

Median year-over-year revenue growth remained unchanged in the office/clerical staffing segment at 5%.

The report also found direct hire revenue growth accelerated to a median year-over-year expansion rate of 10% in April from 5% in March.

Average sales difficulty decreased to 2.63 in April from to 2.75 in March (on a five-point scale, with five being most difficult), while average recruiting difficulty edged up slightly to 3.25 from 3.24 in the survey overall. For IT staffing firms, sales difficulty decreased while recruiting difficulty increased. Both sales and recruiting difficulty levels increased for industrial staffing firms. Firms supplying the healthcare and manufacturing industries reported decreased difficulty levels for both sales and recruiting.

Pulse Survey results are based on a monthly survey of US staffing firms. Data from the month of April was submitted by individuals from 121 staffing companies. Report highlights are available online.

The next Pulse Survey is currently underway. Participate now by selecting this link.