Reports for the first quarter of 2022 are coming out for a number of big IT staffing companies, and the oft-cited phrase “digital transformation” continues to create job openings and robust growth in the segment.
Kforce Tech Flex revenue was up 27% year over year on an organic basis in the first quarter of 2022 and 35% organically over the first quarter of 2020 (the last pre-pandemic period). Growth in every industry was up double-digits, assignment starts remained at record-high levels and assignment lengths are increasing.
Kforce COO Kye Mitchell noted in the company’s 2022 first-quarter earnings press release, “The operating trends we are seeing in our Technology business have remained strong. We saw acceleration in our average bill rates, which grew nearly 4% sequentially and just over 6% year over year to approximately $85 per hour. Importantly, the elevated bill rates have not impacted the strength in the demand environment for highly skilled talent, which we believe supports the criticality of these resources to our clients’ strategic priorities.”
The company expects second-quarter revenues to show similar mid-20% growth year over year.
Similar numbers were seen elsewhere: ASGN Commercial segment revenue was up 28% year over year in the quarter, and the company noted that it expects demand for digital transformation projects to be largely unaffected by any potential downturn in the US economy. ManpowerGroup US Experis revenue (about 90% of which is tech) was up 35% year over year organically, and the company expects strong double-digit growth in Q2. Robert Half Global Technology revenue was up an adjusted 25% in the quarter, and Mastech IT staffing services revenue was up 21%.
Although there is no sign of slowing down from public companies, the SIA | Bullhorn Staffing Indicator for the week ended April 23 shows a slightly declining trend in the last few weeks. The data shows an increase in temporary staffing hours worked in professional occupations (IT, healthcare, finance, engineering, etc.) of 15% year over year, off from its March highs. The economy faces inflation, rising interest rates, supply chain disruptions, and ripple effects from the war in Ukraine. In addition, it is important to point out that IT and other staffing segments face more difficult year over year comparisons as the year progresses.
To see whether any headwinds are being reflected in April IT staffing growth, participate in the next Pulse opening in the second week of May. Keep an eye out for the survey in your email inbox, or access it via our Surveys page.
