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Temp staffing revenue growth decelerates in February but new orders jump

April 03, 2017

US temporary staffing revenue rose a median 5% year over year in February among staffing firms taking part in Staffing Industry Analysts’ monthly Pulse Survey. The 5% growth in February is a deceleration from the 10% rate reported in January.

“February’s data showed mixed signals for temp staffing overall,” said Research Analyst Sree Thiyagarajan. “Nevertheless, an increasing trend in new orders reported by industrial staffing companies and an increasing percent of engineering staffing companies reporting positive revenue growth are notable bullish signals in the market.”

Median year-over-year revenue growth decelerated in the following staffing segments in February from January:

  • Office/clerical: to 4% from 8%
  • Industrial: to 5% from 7%
  • IT: to 5% from 11%
  • Travel nursing: to 15% from 20%
  • Per diem nursing: to 9% from 21%
  • Allied healthcare: to 9% from 15%

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

  • Locum tenens: to 21% from 15%
  • Engineering/design: to 8% from 0%
  • Legal: to 2% from -1%
  • Clinical/scientific staffing: to 7% from 5%
  • Marketing/creative: to 11% from 10%

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

The report also found direct hire revenue growth decelerated to a median year-over-year expansion rate of 6% in February from 14% in January.

Sales difficulty remained at 2.78 in February for the third consecutive month (on a five-point scale, with five being most difficult), while average recruiting difficulty increased to 3.18 from 3.16 in the survey overall. IT staffing firms reported sales difficulty decreased to 3.00 while recruiting difficulty edged up to 2.96, Sales difficulty increased while recruiting difficulty decreased for industrial staffing firms and firms supplying the manufacturing industry. Healthcare staffing firms reported decreased difficulty levels for both sales and recruiting.

The net proportion of firms reporting an increasing trend in new orders jumped to 39% in February from 25% reported for January and exceeded the 32% average for last 12 months. The net proportion of firms reporting an increase in new orders bounced back up in February in all sectors.

Pulse Survey results are based on a monthly survey of US staffing firms. Data from the month of February was submitted by individuals from 169 staffing companies. Report highlights are available online.

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