IT staffing showed modest growth to end 2022 per our “US Pulse Survey Report,” with optimism rolling into the new year. IT staffing segment revenue was up a median 9% year over year, down only slightly from 10% in October. The net percent of firms reporting positive year-over-year revenue growth was 44%, in line with 45% and 49% in the previous two surveys. And over the next six months, a net 52% of firms predict an increasing trend in new orders.
In the Pulse, we also measure average sales difficulty and average for all staffing segments. Below are the historical values for specifically the IT staffing segment.
For the second straight survey, recruiting difficulty is below sales difficulty, which is not a common sight. Recruiting difficulty has now dropped to its lowest level since January 2021.
These trends show us that the labor market has loosened significantly since 2021. Large-scale layoffs at big tech companies do not necessarily correlate with recruiting difficulty, but as laid-off talent shifts to new roles, there could be a spillover effect into staffing, making recruiting easier than it was prior to the layoffs. Furthermore, the general climate of economic uncertainty has had a say in making sales difficulty higher than it was in the especially low previous two years.
Despite economic uncertainty in 2022, however, interest in IT staffing transactions during the year was at an historical high. Per our M&A database report, there were 38 IT staffing transactions globally, up from 33 in 2021 and the highest in any year since we started tracking acquisitions in 2014. In our “Merger & Acquisition Trends: North America” report, IT was the most targeted staffing segment for acquisitions in 2022. There were 27 IT staffing deals in North America during the year, accounting for 20% of all M&A staffing transactions in North America.
To see whether this appetite for IT staffing M&A continues into 2023, keep an eye on our M&A database, which is updated quarterly. Meanwhile, to get the most up-to-date IT staffing trends, participate in our next Pulse in March. Visit our surveys page for more info.
