US staffing hours down due to Labor Day
US staffing hours were down 7.6% compared to the previous week due to the short holiday week. Similarly, commercial staffing was down 7.3% and professional hours were down 9.2% week over week.
*Indexed value of US staffing hours benchmarked against the week ending January 19, 2019.
Staffing Industry Analysts' perspective
Hours worked in the US staffing industry in the week ending September 7th decreased by -8% year-over-year. Commercial staffing hours were down -8% while Professional staffing hours were down -10%.
US Staffing hours were impacted by the Labor Day holiday related business closures. We are expecting demand for staffing services to bounce back during the week ending September 14th. The last quarter of the year is typically characterized by a broad-based, stronger momentum for staffing.
Prior to the Labor Day holiday, US Staffing hours had increased sequentially every week since the July 4th week and reached levels last observed during the week ending on Dec 23, 2023.
Another reason for cautious optimism, the year-over-year decline rates for US Staffing and Commercial Staffing remain at their lowest this year. The year-over-year gap in Indexed values has been narrowing steadily since April this year for US Staffing and Commercial Staffing.
The US staffing industry is a large and dynamic market that continues to offer big opportunities
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 September 2024 US Jobs Report (published on September 6th) estimates that employment in the temporary help services industry fell by -5.2% in August 2024, on a Y/Y basis; and was stable (-0.1%) when compared with July 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 September 10th. To read more about the current staffing environment, please see SIA’s Insights on the Recent Downturn in US Temporary Staffing 2024 report.
About the SIA Bullhorn Staffing Industry 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.