Americas Business and Information Services April Temp Penetration

US temp penetration remains near six-year lows at 1.57%, while temp jobs fell 1.7% y/y in April. Goldman Sachs is cautious on the domestic temp staffing sector, particularly white-collar segments vulnerable to AI risks.

Key Takeaways

• 1.US temp penetration rose slightly to 1.57% in April but remains near a six-year low, signaling structural and cyclical headwinds.
• 2.AI-driven disintermediation poses a specific threat to white-collar temp roles, which constitute approximately 55% of the US temp market.
• 3.Divergent company outlooks: Korn Ferry is favored (Buy) for its AI-protected executive focus; Robert Half is pressured (Sell) due to white-collar AI risk and Protiviti weakness.

Table of Contents

• April temp penetration ticked higher but remains near multi-year lows as temp jobs continued to fall
• Temp penetration improved m/m in April
• Temp jobs contracted y/y in April
• Temp wage growth solid
• RHI's Protiviti weakness pushes recovery further out
• MAN supported by Europe recovery and early AI benefits
• KFY benefiting from labor market megatrends and revenue diversification
• Valuation and Risks
• Disclosure Appendix

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