What's New in Contingent Staffing? Trends & Themes

By 2031, the contingent workforce is projected to reach $465.2 billion. In the US, 40% of workers are already in contingent roles, and this number is expected to rise to 50% by 2050. The contingent staffing market is growing rapidly and is essential to the global staffing industry. Freelancers, consultants, and contract workers are all in high demand across various skill sets.

Contingent Labor By The Numbers:

1. The average organization in the US has 18% of its workers in contingent roles.
2. An Oxford Economics survey shows 83% of executives are using more contingent workers to meet business goals.

Global Talent Insights: The Role of Contingent Staffing

The talent market in the US and UK is facing a significant supply-demand imbalance:

• In January 2024, the US had 8.9 million job openings but only 6.1 million unemployed people.
• In the UK, there were 0.93 million job openings and 1.36 million unemployed individuals.

These gaps highlight the crucial role contingent staffing providers can play in filling these positions.

Turning the Tide: Growth Forecasts and Demand Drivers for Staffing Industry

• Despite a challenging 2023, with a -9% growth in the US and -8% in the UK, the future looks bright.
• Projections for 2024-2026 show a comeback, with growth rates of 4-6% in the US and 3-5% in the UK.

Several factors are driving this positive outlook:

1. Technological Advancements: Ongoing tech evolution is creating new roles and opportunities in staffing.
2. Engagement Models: Innovative engagement models beyond traditional staff augmentation are boosting flexibility and efficiency.
3. Skill Shortages: Demand for specialized talent is rising due to skill shortages, especially in niche areas.
4. Skill Evolution: Rapid changes in skills, particularly in industrial staffing, require constant adaptation and learning.

Opportunities in a Fragmented Market

• The US and UK contingent staffing markets are highly fragmented, with no single provider dominating.
• This fragmentation creates opportunities for agile and innovative providers to find niche segments and offer unique services.

Conclusion

The future of contingent staffing is bright, driven by tech advancements, new engagement models, and a demand for specialized skills. Providers who invest in offshore capabilities, adapt to trends, and offer unique services will excel. Success requires staying updated on trends and tackling challenges head-on. The next talent war is coming, and those prepared will lead. By understanding these trends, businesses can navigate complexities and achieve long-term success. Stay informed and adaptable to seize future opportunities.