US Staffing Down 10%, Global Hiring 5%: Can 2025 Turn it Around?

1. 10% Dip in US Staffing Industry: What’s Next?

The US staffing industry is forecasted to decline by 10% in 2024, reaching a market size of $189.0 billion. This dip is largely influenced by client caution, delays in projects, a struggling manufacturing sector, and lower bill rates in healthcare and a shift toward permanent jobs. To stay competitive, staffing firms must quickly adapt and deliver greater value to clients and candidates.

2. Industry Outlook: Sector-Wise Insights

• Healthcare: A decline of 19% is expected due to a drop in demand for travel nurses and lower bill rates. However, locum tenens roles could grow by 12% as healthcare workforce shortages persist.
• Industrial: A 10% decrease is predicted, thanks to weak demand for contingent workers in the sluggish manufacturing industry.
• IT Staffing: With large clients becoming more cautious with spending, the IT staffing sector is expected to see a 7% decline.

3. How 2025 Looks for US Staffing??

While 2024 may be tough, there’s good news on the horizon. The US staffing industry is expected to bounce back with 5% growth in 2025, reaching a market size of $198.3 billion. Key drivers include:

• A stable GDP growth forecast of 1.8-2.2%
• Lower interest rates and no anticipated recession
• Increased demand in manufacturing and warehousing
• Growing adoption of staffing platforms and contingent workforce programs, especially with the rise of remote work

Top Stories Impacting Staffing

• Global Employment Outlook: The global hiring outlook for Q4 2024 dropped 5% year-over-year but rose 3% from Q3. Countries like India, Costa Rica, and the US have the strongest hiring plans, while Argentina and Israel are seeing weaker forecasts.
• Job Growth in the US: By 2033, the US is expected to add 6.7 million jobs, particularly in healthcare and tech. Wind turbine service technicians (+60.1%) and nurse practitioners (+46.3%) are among the fastest-growing occupations.
• AI and the Workplace: A recent report shows that while a third of workers in the US, UK, and Mexico support banning AI to protect jobs, 69% are asking for clearer guidelines, and nearly half believe AI helps them focus on higher-value tasks.

Opportunities for US Staffing Firms

Looking forward, here’s where the potential lies:

• Contingent workforce expected to remain stable or grow.
• Remote work expands global talent pools.
• Automated staffing platforms improve efficiency.
• Complex talent acquisition tech drives outsourcing.
• Staffing platforms growing, 22% market share in healthcare.
• Rising tech complexity boosts outsourcing to staffing firms

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