US Staffing Market: Growth Forecasts and Emerging Trends

Did you know that the US staffing industry is the largest market in the world???

Even after years of ups and downs, this resilient industry still generates nearly one-third of the total global revenue, outpacing Japan, the UK, and Germany combined. Impressive, right???

Looking ahead to 2024, there are exciting new trends and forecasts on the horizon. We’ve done the legwork for you, gathering all the important information in one place. No need to search multiple sources!??

Read the blog to make better staffing decisions, predict client demand, and prepare for market shifts.

How Big is the US Staffing Industry?

The US staffing market remains a behemoth, accounting for a substantial share of the global staffing revenue. However, the industry is facing a projected 3% decline in 2024, bringing the total revenue down to $184.6 billion. Despite this dip, the outlook for 2025 is brighter, with an anticipated growth of 3%, pushing the revenue up to $189.9 billion. This positive trend aligns with the US GDP growth forecast of 2.1% in 2025, which exceeds the long-term average of 1.8-1.9%, signaling robust economic conditions that could benefit the staffing industry.

Sector-Wise Growth

Not all sectors within the staffing industry will experience uniform growth. Here's a closer look at the projected changes:

1?? Industrial Staffing: A decline of 5%

2?? IT Staffing: A decline of 3%

3?? Healthcare Staffing: A significant decline of 11%

These sector-specific forecasts highlight the varying challenges and opportunities across different domains.

Best States for US Staffing Companies

Geographical location continues to play a crucial role in the success of staffing companies. The following states are projected to be the best for staffing companies in 2024:

? California

? New York

? Texas

? Florida

? North Carolina

These states offer robust economic environments and ample opportunities for staffing companies to thrive.

Revenue Split: Temporary vs. Permanent Staffing

The majority of revenue in the US staffing industry comes from temporary staffing, which accounts for 89% of the total revenue. Permanent staffing contributes the remaining 11%. This split underscores the dominance of temporary staffing in the current market landscape.

Industry Trends

Several key trends are poised to shape the future of the US staffing industry:

1. Evolution of Contingent Workforce Programs: Companies are increasingly adopting contingent workforce programs to enhance flexibility and efficiency.
2. Remote Work Transformation: The shift to remote work continues to redefine staffing practices and opportunities.
3. Rise of Staffing Platform Technology: Advanced staffing platforms are revolutionizing how staffing companies operate and connect with clients and candidates.
4. Widened Applicant Pool: Technology and remote work are broadening the talent pool, enabling access to a more diverse range of candidates.

Emerging Technologies: AI & Automation

The integration of AI and automation is set to transform the staffing industry significantly:

• 94% of staffing companies plan to integrate AI within the next five years.
• 76% believe AI will enhance operational efficiency.
• 67% will use AI to automate repetitive tasks.
• 60% expect AI to boost sourcing and screening processes.

AI and automation are not just futuristic concepts but imminent realities that will drive operational improvements and competitive advantages.

Conclusion

The US staffing industry stands at a pivotal moment, balancing between challenges and opportunities. While some sectors face declines, the overall growth forecast and technological advancements present a promising future. By embracing these trends and leveraging emerging technologies, staffing companies can navigate the evolving landscape and achieve sustained success.

Access the infographic: US Industry Trends and Projections: Infographic