A major player in the industry, Kforce, has released its fourth-quarter and full-year 2022 earnings. After a strong fourth quarter in which the company’s IT flex segment came in with 8.5% growth, annual revenue growth for the segment was 17.8% per billing day in 2022. Bill rates were up 1.7% sequentially.

In its earnings call, the company noted it saw some softening due to uncertainty in the economy, but clients are still pursuing technology projects. Many of these projects are multiple-year engagements that will continue in spite of any economic setbacks. In terms of guidance, the company expects first-quarter 2023 tech flex revenue growth of low to mid-single digits.

Speaking of economic uncertainty, tech layoffs and a reluctance to add headcount in some areas led to a decline in IT jobs in January, per the TechServe Alliance. The IT unemployment rate was only 2.1% in the fourth quarter, but employment was down 1.46% over December 2021. This represents 79,700 jobs.

The phenomenon of layoffs in the midst of a talent shortage has not yet passed, and unfilled IT jobs are still a common sight. But hiring is expected to be strong in the first quarter. Take the ManpowerGroup Employment Outlook for example, which found the US IT sector had the strongest first-quarter 2023 net employment outlook at 52%.

Certainly, there are mixed signals in the market, but IT staffing is so far pushing growth on into the new year.

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