It’s 2021 report season, and we’re seeing healthy fourth-quarter growth in IT staffing.

Temporary and consultant revenue at Robert Half US was up 33.4% year over year in the fourth quarter of 2021, and its global technology segment was up 21.4%. Kforce Technology’s Flex revenue was up 30%. Other strong numbers were seen from Adecco’s Modis Americas division (24%), Mastech IT Staffing Services (23%), ASGN (17%), and Kelly Services Science, Engineering & Technology (15.5%).

These impressive figures align with the 25% year-over-year growth in IT staffing in December published in the January Pulse, where a net 75% of responding IT staffing companies reported positive year-over-year growth. Additionally, a net 65% of participating companies expected an increase in new orders over the next six months.

This is further reflected in the SIA | Bullhorn Staffing Indicator, where temporary staffing hours worked in professional occupations (IT, healthcare, finance, engineering, etc.) for the week ended Feb. 19 were up 24% year over year. Demand levels were particularly robust for IT and healthcare staffing.

Interestingly, growth in total IT employment was more modest, according to analysis from the TechServe Alliance, which reported that the IT sector only added 4,000 jobs in January. This represents an increase of only 0.08% month over month, and an increase of 2.35% year over year. IT employment in the index has only slightly increased since the middle of last year. While demand for IT roles has certainly been high at this time, companies are still facing difficulties attracting candidates, and have needed to increase pay and incentives to lure talent.

This relates back to staffing firms in that staffing pay rates have increased, and bill rates have also been on the rise. The figure below shows Pulse Survey bill rate trend data since early 2019. After a temporary drop in 2020, observed and predicted trends in bill rates are now higher than their pre-pandemic levels.

Companies looking to hire temporary IT talent are paying — and will have to continue paying — top dollar to staffing companies. As the talent shortage persists, staffing companies will have to decide how much to subsequently increase pay rates to get those open tech positions filled.

And in terms of the pandemic, IT staffing has proven to be extremely resilient in the last two years. Regardless of any new waves/re-imposed restrictions that might occur down the line, it appears the high demand for IT staff and the flexibility of such positions makes the segment as strong as ever in the first quarter of 2022.

For an up-to-date view of 2022 trends, participate in the upcoming March Pulse, which is scheduled to go out March 8. Keep an eye out for the survey or access it via our Surveys page.