Raphael Bohne
Research expert covering professional services
Staffing industry in the U.S. - statistics & facts
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The staffing industry in the United States has remained relevant to the turbulent economy of the last few years for several reasons. These reasons revolve around flexibility, speed, specialization, cost-effectiveness, and labor market dynamics that has included the gig economy connecting workers seeking non-traditional employment with companies that need their skills. Staffing firms also provide companies with workers under circumstances such as maternity and paternity leave, short-term projects, or periods of high demand within a company. The sector with the highest share of annual temporary staffing sales in the United States was in industrial work. Despite said candidates working within a client company, some remain as employees of the staffing agency. The average employment tenure of contract and temporary employees in the United States has been between nine and 10 weeks over the last several years. This is not the case in all positions, as the employee may go on to be hired permanently by the client company.
The staffing industry in the United States plays a vital role in providing flexibility, efficiency, and specialized talent to businesses, while offering diverse employment opportunities for workers. Its significance in the current economy underscores its ability to adapt to changing market conditions and meet the dynamic needs of both employers and job seekers.
High turnovers in finance and personnel
The staffing industry can help to stabilize the job market and support economic growth by ensuring that businesses can find the talent that they need. As a result of this, the market size of the staffing and recruiting industry in the United States achieved a record high as it fully recovered following the coronavirus pandemic in 2022. Furthermore, staffing and recruiting industry sales in the United States also peaked, generating almost 170 billion U.S. dollars in 2021. Despite these impressive financial figures, the turnover rate for temporary and contract staff has remained high over the last few years. This means that companies have to spend more on the cost of recruiting and training, as well as other investments associated with new employees joining a workforce.Testing times for employers
The main industry challenge faced by staffing and recruitment companies in both North America and the wider world has been a talent shortage, as staffing and recruitment professionals made this their most clear obstacle by some distance. Perhaps somewhat related, the main priority according to professionals at recruitment companies in North America was talent acquisition. As a consequence, this has made attracting skilled candidates a valuable process within the staffing industry, as high starting salaries have become the top method of luring in talent.The staffing industry in the United States plays a vital role in providing flexibility, efficiency, and specialized talent to businesses, while offering diverse employment opportunities for workers. Its significance in the current economy underscores its ability to adapt to changing market conditions and meet the dynamic needs of both employers and job seekers.
Raphael Bohne
,
May 28, 2024
Raphael Bohne
Research expert covering professional services
