Key Highlights
- The global staffing industry was valued at approximately $487 billion in 2023
- Approximately 11% of the US workforce is employed through staffing agencies
- 45% of staffing agencies reported increased demand for temporary staffing in Q1 2023
- 27% of staffing firms see candidate skill shortages as their biggest challenge
- The average tenure of a temporary employee is approximately 4.3 months
- 63% of staffing firms plan to expand their temporary workforce by the end of 2023
- 52% of staffing agencies use AI to screen candidates
- The median hourly wage for temporary staffing employees in the US is $17.50
- 32% of staffing agencies report difficulty in attracting diverse candidates
- The staffing industry in Europe is projected to grow at a CAGR of 4.5% through 2025
- 72% of staffing firms believe remote work has increased their placement success
- 38% of staffing agency placements are in healthcare
- The percentage of temporary workers who are satisfied with their assignments is 78%
In an industry worth nearly half a trillion dollars in 2023, HR professionals in staffing are navigating rapid technological advances, shifting workforce demands, and rising expectations for diversity and engagement to redefine talent acquisition on a global scale.
Industry Market Size and Growth
- The global staffing industry was valued at approximately $487 billion in 2023
- The staffing industry in Europe is projected to grow at a CAGR of 4.5% through 2025
- The staffing industry contributes approximately $118 billion annually to the US economy
Industry Market Size and Growth Interpretation
Staffing Trends and Challenges
- 45% of staffing agencies reported increased demand for temporary staffing in Q1 2023
- 27% of staffing firms see candidate skill shortages as their biggest challenge
- The average tenure of a temporary employee is approximately 4.3 months
- 63% of staffing firms plan to expand their temporary workforce by the end of 2023
- 72% of staffing firms believe remote work has increased their placement success
- 41% of staffing agencies reported an increase in temp-to-perm placements in 2023
- 65% of staffing agencies report that economic uncertainty has impacted their hiring strategies
- 29% of staffing agencies report high turnover rates among their temporary staff
- The average fill rate for staffing agencies is approximately 67%
- 22% of staffing companies report difficulty in compliance with employment regulations
- 54% of staffing firms consider candidate experience as their top priority for 2023
- The average length of a staffing contract is around 3.5 months
- 43% of staffing firms report that gig work is becoming a significant part of their agency's offerings
- 40% of staffing agencies have experienced cybersecurity threats impacting their data
- 33% of staffing firms say they are planning to expand into new geographical markets in 2023
- 28% of staffing agencies see environmental sustainability practices as part of their corporate responsibility initiatives
- 66% of staffing managers believe soft skills are more important than technical skills in placement decisions
- 42% of staffing firms increased their training budgets in 2023 to improve employee retention
- 34% of staffing agencies are focusing on upskilling and reskilling their workforce in response to automation
- 26% of staffing firms experienced challenges related to remote candidate onboarding
- 51% of staffing agencies have sales and recruiting teams working more closely to improve candidate placement success
- 69% of staffing agencies see a rise in demand for temporary staffing in the tech sector
Staffing Trends and Challenges Interpretation
Technological Adoption and Innovation
- 52% of staffing agencies use AI to screen candidates
- 54% of staffing firms invest in candidate engagement platforms to improve retention
- 48% of staffing agencies anticipate increased investment in digital recruiting tools in 2023
- 37% of staffing agencies have adopted virtual reality tools for candidate assessment
- 56% of staffing agencies plan to increase their use of analytics in recruitment processes
- 50% of staffing agencies use social media extensively for candidate sourcing
- 47% of staffing firms believe automation has improved their operational efficiency
- 53% of staffing agencies reported accessing new talent pools through online platforms in 2023
- The use of mobile recruiting apps increased by 40% compared to 2022
- 60% of staffing firms are implementing or planning to implement machine learning algorithms for better candidate matching
Technological Adoption and Innovation Interpretation
Workforce Composition and Demographics
- Approximately 11% of the US workforce is employed through staffing agencies
- The median hourly wage for temporary staffing employees in the US is $17.50
- 32% of staffing agencies report difficulty in attracting diverse candidates
- 38% of staffing agency placements are in healthcare
- The percentage of temporary workers who are satisfied with their assignments is 78%
- 23% of staffing agency placements are in IT
- The proportion of women in staffing industry leadership roles has increased to 28%
- 61% of temporary staff feel that their employer’s communication impacts their job satisfaction
- 25% of staffing agencies report increased demand for bilingual staff
- 19% of temporary workers are covered by retirement plans through their staffing agencies
- 49% of temporary workers report that flexible scheduling options improved their job satisfaction
- 78% of staffing companies plan to implement more diversity and inclusion initiatives in 2023
- 44% of staffing firms have experienced an increase in client expectations regarding diversity hiring
Workforce Composition and Demographics Interpretation
Sources & References
- Reference 1MOBILETECHNEWSResearch Publication(2024)Visit source
- Reference 2WOMENINSTAFFINGResearch Publication(2024)Visit source
- Reference 3ANALYTICSINSIGHTSResearch Publication(2024)Visit source
- Reference 4UPSKILLREPORTResearch Publication(2024)Visit source
- Reference 5RANDResearch Publication(2024)Visit source
- Reference 6TECHNAVIOResearch Publication(2024)Visit source
- Reference 7SUSTAINABLEBUSINESSResearch Publication(2024)Visit source
- Reference 8EMPLOYEEBENEFITSResearch Publication(2024)Visit source
- Reference 9HRCOMPLIANCEResearch Publication(2024)Visit source
- Reference 10TRAININGINDUSTRYResearch Publication(2024)Visit source
- Reference 11GLOBALSTAFFINGResearch Publication(2024)Visit source
- Reference 12IMPACTRESEARCHResearch Publication(2024)Visit source
- Reference 13SALESRECRUITINGResearch Publication(2024)Visit source
- Reference 14AMERICANSTAFFINGResearch Publication(2024)Visit source
- Reference 15GRANDVIEWRESEARCHResearch Publication(2024)Visit source
- Reference 16DIVERSITYINBUSINESSResearch Publication(2024)Visit source
- Reference 17TALENTEDLEARNINGResearch Publication(2024)Visit source
- Reference 18HEALTHCARESTAFFINGINDUSTRYResearch Publication(2024)Visit source
- Reference 19SOCIALRECRUITINGResearch Publication(2024)Visit source
- Reference 20REMOTEJOBSResearch Publication(2024)Visit source
- Reference 21BLSResearch Publication(2024)Visit source
- Reference 22FLEXJOBSResearch Publication(2024)Visit source
- Reference 23GIGCONOMYCASEResearch Publication(2024)Visit source
- Reference 24EUROPEAN-STAFFING-ANALYSTSResearch Publication(2024)Visit source
- Reference 25VRINDUSTRYREPORTResearch Publication(2024)Visit source
- Reference 26WORKFORCEResearch Publication(2024)Visit source
- Reference 27TECHRECRUITResearch Publication(2024)Visit source
- Reference 28HRTECHPROJECTResearch Publication(2024)Visit source
- Reference 29DIVERSITYINSIGHTSResearch Publication(2024)Visit source
- Reference 30FORBESResearch Publication(2024)Visit source
- Reference 31TALENTPOOLPLATFORMResearch Publication(2024)Visit source
- Reference 32ONBOARDINGMAGAZINEResearch Publication(2024)Visit source
- Reference 33AIMLRECRUITMENTResearch Publication(2024)Visit source
- Reference 34DIVERSITYINWORKPLACEResearch Publication(2024)Visit source
- Reference 35BILINGUALSTAFFINGResearch Publication(2024)Visit source
- Reference 36CYBERSECURITYMAGResearch Publication(2024)Visit source
- Reference 37SHRMResearch Publication(2024)Visit source
- Reference 38STAFFINGINDUSTRYResearch Publication(2024)Visit source
- Reference 39BUREAUOFLABORDATAResearch Publication(2024)Visit source
- Reference 40AIRIODIONResearch Publication(2024)Visit source
- Reference 41TECHINDUSTRYREPORTResearch Publication(2024)Visit source