As seen in the November 2023 Pulse Report, IT temporary staffing revenue was down a median 4% year-over-year in October, down from a flat 0% year-over-year change in the previous report (and the lowest level all year). A net 15% of IT staffing firms reported decreasing revenue growth.

In this month’s Pulse, we also asked staffing firm participants to share their company’s biggest challenges. Overall, 115 respondents left an open-ended response to this question, including 29 in the IT staffing staffing. A staggering 20 of those 29 IT responses (69%) pointed to a slowdown in new orders/requisitions. A few responses from IT staffing companies are shown below.

What is the biggest challenge that your staffing firm is currently facing?

• “Clients that are growing and excellent qualified candidates. I think the clients have gotten pickier and the candidates have remained picky post Covid.”
• “Hiring quality people for sales and recruiting.”
• “Lower than normal job order volume.”
• “Not enough job orders to keep recruiters busy.”

This month’s report shows how challenging 2023 has been in IT staffing, and yet there is optimism that the downward trend will (or has already begun to) reverse course. In fact, a net 53% of IT staffing respondents expect an increasing trend in new orders over the next six months. Further, a net 18% expect an increasing trend in bill rates in the next six months. If that is the case, we will see improvements in year-over-year figures going forward.

To see how the year ends in IT staffing, be sure to participate in the January Pulse. Keep an eye out for the invite at the beginning of the month or visit our surveys page.