Economic Downturn Sensitivity: The demand for temporary staffing services is highly cyclical and sensitive to overall economic conditions, meaning a recession or economic slowdown could significantly reduce client demand and revenue.

Intense Competitive Environment: The staffing industry is highly fragmented and competitive, facing pressure from national, regional, and niche agencies, which could lead to pricing pressure and difficulty in maintaining market share.

Regulatory Compliance and Legal Risks: Changes in labor laws, wage and hour regulations, worker classification rules, and other employment-related legislation can increase operating costs, lead to litigation, or necessitate significant operational adjustments.