Staffing Doesn’t Stop: Supporting Millions in the Evolving Job Market

Staffing firms play a crucial role in supporting the U.S. economy. With over 20,000 staffing firms across the country employing around 17 million people internally, the industry connects approximately 12.7 million people each year with temporary or contract work ( American Staffing Association ). This sector has been expanding at a significant rate, often outpacing overall economic growth with an annual growth rate of approximately 3%. Following the pandemic, the demand for staffing surged even more as businesses ramped up hiring to meet the post-pandemic demand.

Despite recent headlines focusing on layoffs, staffing continues to fuel economic stability. The ASA estimates that the industry brings over $160 billion annually to the U.S. economy, and Staffing Industry Analysts project that this number could grow to $189 billion by the end of 2024.

As of October 2024, there were an estimated 7.4 million open jobs. In September 2024, layoffs and resignations remained relatively stable overall, with a decrease seen in the Midwest (U.S. Bureau of Labor Statistics). The healthcare, social assistance, and government sectors, however, showed strong job growth by creating over 90,000 new positions in October.

Staffing covers almost all industries, with the top being industrial, office/administrative, professional/managerial, engineering/IT/scientific, and healthcare. Many sectors face a skills gap, meaning there are more jobs available than qualified people to fill them. This is especially true in fields that require specialized skills, like IT, healthcare, engineering, and finance. This gap is partly due to rapid technological advancements outpacing traditional education and training programs, leaving companies in a constant search for skilled talent. Staffing agencies help bridge the skills gap by providing companies with specialized talent they may not find through traditional hiring.

Cory Stahle from Indeed Hiring Lab stated, "Make no mistake, the US labor market is still relatively solid, and employer demand in many large sectors is still elevated. However, there are diverging corners of the labor market where it has become more difficult to find new jobs quickly. For example, because of cooler employer demand in sectors like software development, it may feel much harder for workers seeking those roles to find a job now than a few years ago. But there are signs of a potential turning point."

The U.S. staffing industry has become essential for economic strength, filling workforce gaps, and providing flexible jobs. Especially during recovery phases, staffing agencies give both businesses and job seekers the flexibility they need to succeed in a changing economy.