Post-Memorial Day Lift Stronger Than A Year Ago
| Week ending Jun 8, 2024 | Indexed Value | Y/Y | W/W |
| US Staffing | 81 | -11% | 2.9% |
| Commercial Staffing | 68 | -12% | 3.1% |
| Professional Staffing | 113 | -9% | 2.1% |
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 13th, 2019.
Year-over-year changes for the week ending June 8th
Temporary staffing hours worked for the week ending June 8th (“last week measured”) were down -11% 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 -9% year-over-year.
On a week-over-week sequential basis, temporary staffing hours worked were up 2.9%, as business picked up following the Memorial Day holiday related business closures. Commercial temporary staffing hours were up 3.1% while professional temporary staffing hours were up 2.1%.
Year-over-year change in US staffing, professional staffing, and commercial staffing
Commentary for the week ending June 8th
The Professional Staffing indexed value was 113 for the week ending June 8th, following readings of 110 and 119 in the prior two weeks (ending June 1st and May 25th, respectively.)
The Commercial Staffing indexed value was 68 for the same week, following values of 66 and 70 in the prior two weeks.
The US Staffing indexed value, weighted to reflect the US staffing industry mix of professional and commercial jobs, was 81 for the week ending June 8th, following readings of 78 and 84 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 June 8th decreased by -11% year-over-year. Commercial staffing hours were down -12% while Professional staffing hours were down -9%.
However, we notice that the Y/Y comparisons have appeared to improve since the beginning of the year for Commercial Staffing, and since March for Professional Staffing.
Year-to-date, the median Y/Y growth rate is -13% 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.
The sequential increase resulting from demand for staffing services rising after the Memorial Day holiday week appear to be stronger than the week-on-week change values observed following the same holiday in 2023 (US Staffing: 1.3%; Commercial Staffing: 1.4%; Professional Staffing: 1.1%). We will be following closely the momentum post-Independence Day holiday.
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 June 2024 US Jobs Report (published on June 7th) estimates that employment in the temporary help services industry fell by -6.5% in May 2024, on a Y/Y basis; and declined by -0.5% when compared with April 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 27th.
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:
SIA_Bullhorn_Indicator_20240618.xlsx 110.27 kB