Staffmark, a Cincinnati-based staffing firm, reported second-quarter revenue fell 37.3% year over year to $169.4 million, according to a filing with the U.S. Securities and Exchange Commission by parent company Compass Diversified Holdings (NASD: CODI).

Staffmark, formerly CBS Personnel Holdings Inc., reported revenue fell as the economic slowdown cut into demand for temporary workers, primarily clerical and light industrial workers. The company noted some improvement in the second quarter, but said revenue will likely remain depressed through 2009.

Second-quarter gross margin at Staffmark narrowed to 15.6% from 17.3% in the year-ago quarter. The company said the decrease came because of a drop in demand for direct-hire services and downward pricing pressure.

Staffmark represented 58.9% of Compass Diversified Holding's revenue for the second quarter.