US Staffing Trends Suggest Sluggish Overall Volume
| Week ending Feb 10, 2024 | Indexed Value | Y/Y | W/W |
| US Staffing | 87 | -12% | 0.8% |
| Commercial Staffing | 72 | -14% | 0.9% |
| Professional Staffing | 129 | -7% | 0.6% |
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 February 10th
Temporary staffing hours worked for the week ending February 10th (“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 -14% year-over-year.
Temporary staffing hours worked in professional occupations (IT, healthcare, finance, engineering, etc.) were down -7% year-over-year.
On a week-over-week sequential basis, temporary staffing hours worked were up 0.8%. Commercial temporary staffing hours were up 0.9% while professional temporary staffing hours were up 0.6%.
Year-over-year change in US staffing, professional staffing, and commercial staffing
Commentary for the week ending February 10th
The Professional Staffing indexed value was 129 for the week ending February 10th, following readings of 128 and 123 in the prior two weeks (ending February 3rd and January 27th, respectively.)
The Commercial Staffing indexed value was 72 for the same week, following values of 71 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 87 for the week ending February 10th, following readings of 86 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 February 10th decreased by -12% year-over-year. Commercial staffing hours were down -14% while Professional staffing hours were down -7%. We note that anecdotal reports of winter storm disruptions have contributed to some degree to the slow start that staffing is having this year.
As of the week ending February 10th, the Indicator values for Commercial staffing have regained just above 60% of the drop observed between the week ending December 16th and the week ending January 6th. The Indicator values for Professional staffing have regained over 85% of the drop observed over the same period. It is unclear how much more of the remaining gap will be filled in the next few weeks. This will be a good indication for the momentum in this first quarter of year.
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 February 2024 US Jobs Report (published on February 2nd) estimates that employment in the temporary help services industry fell by -7% in January 2024, on a Y/Y basis; and stable sequentially (+0.1%). The latest data, along with the SIA | Bullhorn Staffing Indicator, suggest continued weakness in the industry despite strength in the overall economy.
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 September 12th.
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_20240220.xlsx 106.55 kB