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Temp staffing revenue growth slows to median 6%: US Pulse report

August 02, 2018

US temporary staffing revenue growth decelerated to a median 6% year over year in June from 7% in May, according to Staffing Industry Analysts’ latest Pulse report survey of staffing firms.

“Six months into the year, temporary staffing continued the moderate expansion showed since the beginning of 2018,” SIA Research Analyst Sree Thiyagarajan said. “June was a well-scored month for industrial staffing firms, with roughly three-quarters of the firms reporting an increase in both new orders as well as year-over-year revenue growth.”

Median year-over-year revenue growth decelerated in the following staffing segments in June from May:

  • Clinical/scientific: to 7% from 12%
  • Finance/accounting: to 5% from 8%
  • Locum tenens: to 13% from 16%
  • Office/clerical: to 2% from 3%
  • Industrial staffing: to 5% from 6%
  • IT staffing: to 6% from 7%

Median year-over-year revenue growth accelerated in the following staffing segments in June from May:

  • Marketing/creative: to 24% from 6%
  • Engineering/design: to 22% from 10%
  • Allied healthcare: to 17% from 6%
  • Travel nursing: to 5% from -2%

Median year-over-year revenue growth stayed the same last month for per diem nursing and legal staffing segments, both at 10%.

Median year-over-year revenue growth decreased in direct hire to 5% from 10%.

The June report also found the net proportion of firms reporting an increasing trend in new orders rose to 50% from to 39% in May — higher than the last 12-month average of 40% for this metric.

Average sales difficulty edged down to 2.58 in June from 2.69 in May (on a five-point scale, with five being most difficult), and average recruiting difficulty edged down to 3.25 from 3.35 in the survey overall. Industrial and IT staffing firms and staffing firms serving the healthcare industry all reported a decrease in average sales and recruiting challenge. For staffing firms serving the manufacturing industry, average sales difficulty decreased to 2.44 from 2.61 in May, while average recruiting difficulty edged up slightly to 3.84 from 3.82.

Starting with the report covering April, the Pulse research 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 June 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. Data from the month of June were submitted by individuals from 147 staffing companies. Corporate members of Staffing Industry Analysts 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.