SIA | Bullhorn Staffing Indicator

Professional Staffing Hours Up Slightly, Remaining Below March Levels

Week ending May 4, 2024	Indexed Value	Y/Y	W/W
US Staffing	83	-12%	0.2%
Commercial Staffing	69	-12%	0.1%
Professional Staffing	120	-12%	0.7%

Introduction

Released weekly, the SIA | Bullhorn Staffing Indicator comprises two sets of analyses; a Year-over-Year comparison showing how the week that ended ten days ago (“last week measured”) compares to the same week 12 months previously and an indexed value that has been benchmarked against data from the week ending January 13^th, 2019.

Year-over-year changes for the week ending May 4th

Temporary staffing hours worked for the week ending May 4th (“last week measured”) were down -12% compared to the corresponding week a year ago, according to the Indicator.

Temporary staffing hours completed in commercial occupations (industrial and office/clerical) were down -12% year-over-year.

Temporary staffing hours worked in professional occupations (IT, healthcare, finance, engineering, etc.) were down -12% year-over-year.

On a week-over-week sequential basis, temporary staffing hours worked were stable (0.2%). Commercial temporary staffing hours were stable (0.1%) while professional temporary staffing hours were up 0.7%.

Year-over-year change in US staffing, professional staffing, and commercial staffing

Commentary for the week ending May 4th

The Professional Staffing indexed value was 120 for the week ending May 4th, following readings of 119 and 119 in the prior two weeks (ending April 27th and April 20th, respectively.)

The Commercial Staffing indexed value was 69 for the same week, following values of 69 and 69 in the prior two weeks.

The US Staffing indexed value, weighted to reflect the US staffing industry mix of professional and commercial jobs, was 83 for the week ending May 4th, following readings of 83 and 83 in the prior two weeks, as shown in the graph below.

Values for US staffing, professional staffing, and commercial staffing

Staffing Industry Analysts’ Perspective

Hours worked in the US staffing industry in the week ending April 27th decreased by -12% year-over-year. Commercial staffing hours were down -12% while Professional staffing hours were down -12%.

Year-to-date, the median Y/Y growth rate is -14% for Commercial staffing, -11% for Professional staffing. By comparison, last year’s median Y/Y growth rate was -11% for Commercial staffing and -6% for Professional staffing. This suggests that market conditions for staffing businesses have deteriorated during the first quarter of 2024.

The year-over-year decline in the Indicator is directionally in line with the decline in temporary help employment as reported in the Bureau of Labor Statistics’ monthly Employment Situation reports. The May 2024 US Jobs Report (published on May 3rd) estimates that employment in the temporary help services industry fell by -6% in April 2024, on a Y/Y basis; and declined by -0.6% when compared with March 2024.

With most economists projecting solid growth in the US economy this year (real GDP growth of 2% or higher), we are keeping our eyes open for signs of an eventual uptick in demand for temporary staffing.

Competitive pressures remain elevated but there are continuing and large opportunities for those staffing firms that have developed a competitive advantage via either their technology, their service offerings, or both. For more discussion of the market dynamics for each skill segment of staffing, SIA Corporate Members are encouraged to read our latest US Staffing Industry Forecast report, published on March 27^th.

About the SIA | Bullhorn Staffing Indicator

The SIA | Bullhorn Staffing Indicator is a unique tool for gauging near real time weekly trends in the volume of temporary staffing delivered by US staffing firms. Each week the Indicator reports data for the week that ended ten days prior to the release. It reflects weekly hours worked by temporary workers across a sample of staffing companies in the US that utilize Bullhorn’s technology solutions. The Indicator is weighted and benchmarked against US Bureau of Labor Statistics data to approximate the composition of the staffing industry by skill. While the indicator does not presume to perfectly reflect the entire universe of US staffing firms, it does represent a sizable sample of the US staffing industry, reflecting a wide range of occupations, client industry verticals, and geographic footprint that spans the country.

The Indicator can be used by staffing firms to benchmark their past and current performance, as well as a tool for forecasting near term industry trends and outlook.

As the US temporary staffing industry has often functioned as a co-incident indicator for the US labor market and economy, the SIA | Bullhorn Staffing Indicator is also useful for a broader audience of business leaders and investors who are seeking real-time insight.

The Indicator is a joint custom research effort between Bullhorn and industry advisor Staffing Industry Analysts.

Revisions and Technical notes on the SIA | Bullhorn Staffing Indicator  

We note the readings for the last 4 weeks are subject to revision and so should be viewed as preliminary, with the reading for the last recorded week the most likely to be revised in next week’s data release. For further information on how the Indicator has been created and detailed technical notes please refer to the methodology.

Underlying data for the SIA | Bullhorn Staffing Indicator can be downloaded using the below link: