Per our May Pulse Report, April IT staffing revenue was flat on a median basis, decelerating from +4% in February. The net percent of IT staffing firms reporting positive year over year revenue growth was 20% in February but dropped to 2% in April. And a net -30% of IT staffing firms saw an increasing trend in new orders in the last three months (thus a net 30% saw a decreasing trend).

While these trends all signal a slowdown, a net 26% of firms expects an increasing trend in new orders over the next six months (as well as a net 7% expecting an increasing trend in bill rates).

These two new order figures (last three months and next six months) have tended to be correlated, with expectations in the next six months usually higher than trends seen in the last three months. As can be seen in the graph below, in the last few surveys, the difference in past and future new order trends has been the largest since the outset of the Covid pandemic. This signals that in spite of the downward trend amidst economic uncertainty, optimism is still prevalent, and a stronger second half is expected.

Elsewhere in this month’s Pulse, we took note of the buzz around AI and asked a question about how it might impact staffing operations. 18% of IT staffing firms expect the incorporation of AI at their firm to lead to reduced staffing levels in the next three years (compared to 30% at industrial staffing firms). 70% of IT staffing firms expect AI to have a neutral impact on their staffing levels, and 12% actually expect AI to increase staffing levels.

Thus, IT will remain a very human-centric industry (for now!) though how future developments ultimately play out in AI and their effect on IT staffing and the IT industry is anybody’s guess.

To stay up to date with ongoing IT staffing trends, participate in our July Pulse. Visit our Surveys page for more information.