Soaring to a record $212.5 billion in 2023, the US staffing industry is not just bouncing back from pandemic-era uncertainty but is actively reshaping the very framework of the American workforce.
Key Takeaways
- In 2023, the US staffing industry generated $212.5 billion in revenue, marking a 6% increase from 2022
- The US staffing market is projected to grow at a CAGR of 4.2% from 2024 to 2030, reaching $285 billion by 2030
- Temporary staffing accounted for 78% of total US staffing industry revenue in 2023
- The US staffing industry employed over 3 million temporary and contract workers daily in 2023
- Staffing workers filled 16% of all US jobs in 2023, providing flexibility to businesses
- Women comprise 57% of the staffing workforce in the US as of 2023
- The average bill rate for temporary staff in US was $45.20 per hour in 2023
- Staffing company net profits averaged 4.2% of revenue in 2023 for top 100 firms
- Office-clerical staffing generated $35.6 billion in revenue in 2023
- Temporary nursing placements accounted for 45% of healthcare staffing revenue in 2023
- Industrial staffing represented 28% of total US staffing market share in 2023
- Office/clerical segment held 18% market share with steady demand in 2023
- The US staffing industry is forecasted to grow 3.5% in 2024, reaching $220 billion
- AI adoption in staffing is expected to automate 25% of recruitment tasks by 2027
- Gig economy integration could add 2 million workers to staffing by 2028
The US staffing industry continues strong growth, reaching record revenue in 2023.
Employment and Workforce
- The US staffing industry employed over 3 million temporary and contract workers daily in 2023
- Staffing workers filled 16% of all US jobs in 2023, providing flexibility to businesses
- Women comprise 57% of the staffing workforce in the US as of 2023
- The average tenure of temporary workers in US staffing is 11 months
- 92% of staffing employees work full-time hours while in assignments, per 2023 ASA survey
- US staffing industry added 350,000 net new jobs in 2023
- Temporary help employment peaked at 3.1 million in March 2022 but stabilized at 2.9 million by end-2023
- 37% of staffing workers transition to permanent roles with client companies annually
- Diverse workers (minorities) make up 42% of the US staffing workforce in 2023
- The average hourly wage for US temporary workers was $21.50 in 2023
- Over 80% of US employers used staffing services in 2023, up from 75% in 2020
- Staffing employment in IT sector grew 5.2% YoY in 2023
- Veterans represent 8% of the staffing workforce, higher than national average of 5%
- 65% of staffing workers receive health benefits through agencies in 2023
- US staffing filled 1.7 million jobs in manufacturing sector in 2023
Employment and Workforce Interpretation
The US staffing industry has become the nation's de facto corporate temp agency, quietly and efficiently deploying a remarkably stable, majority-female army of near-permanent full-timers who, for a not-terrible $21.50 an hour, fill a staggering one in six jobs while serving as a critical talent pipeline that converts over a third of its versatile troops into permanent hires.
Industry Segments
- Temporary nursing placements accounted for 45% of healthcare staffing revenue in 2023
- Industrial staffing represented 28% of total US staffing market share in 2023
- Office/clerical segment held 18% market share with steady demand in 2023
- IT/engineering combined for 22% of industry revenue in 2023
- Healthcare staffing grew to 20% of total market in 2023 from 16% in 2020
- Professional staffing (excl. IT) comprised 15% of the market at $31.8 billion in 2023
- Manufacturing sector utilized 35% of all industrial temp workers in 2023
- Travel nursing demand peaked at 15% of healthcare staffing in Q3 2023
- Finance/accounting segment saw 12% growth, capturing 6% market share in 2023
- Construction staffing filled 25% of labor gaps in skilled trades in 2023
- Education staffing surged 18% in K-12 segment during 2023 shortages
- Logistics/warehousing temps made up 40% of industrial placements in 2023
- Cyber security roles dominated IT staffing with 28% of placements in 2023
- Allied health professionals (e.g., therapists) were 30% of healthcare staffing in 2023
- Software development roles accounted for 35% of IT staffing demand in 2023
- Administrative temps in legal firms rose 10% in placements for 2023
- Automotive manufacturing used 22% of industrial staffing hours in 2023
- Cloud computing specialists were 20% of engineering staffing in 2023
- Retail holiday staffing peaked at 500,000 temps in Q4 2023
Industry Segments Interpretation
Amidst the data, a clear portrait emerges: the American workforce is now an agile, temporary ensemble, with healthcare's critical demand pulling the industry's center of gravity while every other sector, from manufacturing floors to cloud servers, choreographs its own complex dance with contingent labor.
Market Size and Growth
- In 2023, the US staffing industry generated $212.5 billion in revenue, marking a 6% increase from 2022
- The US staffing market is projected to grow at a CAGR of 4.2% from 2024 to 2030, reaching $285 billion by 2030
- Temporary staffing accounted for 78% of total US staffing industry revenue in 2023
- The industrial staffing segment grew by 8.7% year-over-year in Q4 2023, contributing to overall market expansion
- US staffing industry employment reached 17.3 million workers in 2023, up 2.1% from the previous year
- The market size of the US staffing industry was valued at $205 billion in 2022
- Staffing penetration rate in the US workforce stood at 16.2% in 2023
- The healthcare staffing submarket expanded by 12.4% in 2023 amid labor shortages
- Total US staffing revenue hit a record $212 billion in 2023, driven by demand in office-clerical and industrial sectors
- The US staffing industry's gross margin averaged 25.8% in 2023
- Direct hire placements contributed $28.4 billion to industry revenue in 2023
- The market is expected to add $15 billion in revenue by 2025 due to economic recovery
- US staffing industry saw 3.2% revenue growth in H1 2024 compared to H1 2023
- Contingent workforce management (CWM) programs grew to represent 40% of large enterprise staffing spend in 2023
- The overall US staffing market contracted by 0.5% in Q1 2024 but showed signs of stabilization
Market Size and Growth Interpretation
Despite a minor contraction in early 2024, the U.S. staffing industry, now a quarter-trillion-dollar behemoth woven into one-sixth of the workforce, is proving it’s far from temporary, as evidenced by its stubborn growth and the fact that finding a permanent employee is becoming a temporary industry itself.
Revenue and Financials
- The average bill rate for temporary staff in US was $45.20 per hour in 2023
- Staffing company net profits averaged 4.2% of revenue in 2023 for top 100 firms
- Office-clerical staffing generated $35.6 billion in revenue in 2023
- Gross margins in IT staffing reached 28.5% in 2023 due to skilled labor premiums
- The top 100 US staffing firms generated $105 billion in revenue in 2023
- Search and placement fees totaled $12.8 billion industry-wide in 2023
- Industrial staffing revenue increased to $56.2 billion in 2023, up 7%
- Healthcare staffing revenue surged to $42.1 billion in 2023
- Average EBITDA margin for public staffing companies was 6.8% in FY2023
- Managed services programs generated $18.5 billion for staffing firms in 2023
- Engineering staffing revenue was $15.3 billion in 2023, growing 4.1%
- Finance and accounting staffing contributed $11.2 billion to 2023 totals
- Temporary-to-perm conversions generated $9.7 billion in fees in 2023
- Legal staffing revenue hit $4.8 billion in 2023 amid compliance demands
- Scientific staffing generated $6.5 billion, up 9% YoY in 2023
- Hospitality staffing revenue recovered to $8.9 billion post-pandemic in 2023
- IT staffing segment dominated with $38.7 billion in revenue for 2023
Revenue and Financials Interpretation
While the American worker’s average $45.20 hourly price tag fuels a vast, $105 billion industry, its titans survive on the meager crumbs of a 4.2% net profit, proving it’s a high-volume game where the real money is found in the margins—especially the IT sector’s juicy 28.5% premium for skilled labor.
Trends and Projections
- The US staffing industry is forecasted to grow 3.5% in 2024, reaching $220 billion
- AI adoption in staffing is expected to automate 25% of recruitment tasks by 2027
- Gig economy integration could add 2 million workers to staffing by 2028
- Remote work staffing demand projected to stabilize at 15% of placements by 2025
- Labor shortages in healthcare expected to persist, driving 10% annual growth through 2030
- Regulatory changes on classification may impact 20% of contingent workforce by 2026
- Upskilling programs in staffing firms projected to cover 50% of workers by 2027
- Sustainability staffing roles to grow 15% annually through 2028
- Total industry employment forecasted at 18 million by end of 2025
- Digital platforms expected to handle 40% of staffing transactions by 2026
- Inflation pressures may reduce margins to 24% by 2025
- Diversity hiring mandates to boost minority placements by 12% annually to 2028
- Recession risk could contract market by 2-4% in 2025 worst-case scenario
- Nearshoring trends to increase manufacturing staffing by 8% through 2027
- Gen Z entry projected to fill 30% of entry-level staffing roles by 2030
- Cybersecurity staffing demand up 25% projected for next 5 years
- Flexible work preferences to drive 20% growth in contract staffing by 2026
- Automation in admin roles may reduce office staffing by 10% by 2027
- EV manufacturing boom to create 500,000 staffing jobs by 2028
- Benefits portability challenges expected to affect 35% of multi-assignment workers by 2025
Trends and Projections Interpretation
The staffing industry is poised to become a $220 billion juggler, expertly tossing AI tools, gig workers, and regulatory curveballs while trying to catch persistent labor shortages and dodge recessionary banana peels, all to meet the surging demand for everything from cybersecurity experts to EV technicians.
Sources & References
- Reference 1STAFFINGINDUSTRYstaffingindustry.comVisit source
- Reference 2GRANDVIEWRESEARCHgrandviewresearch.comVisit source
- Reference 3AMERICANSTAFFINGamericanstaffing.netVisit source
- Reference 4IBISWORLDibisworld.comVisit source
- Reference 5STAFFINGINDUSTRYwww2.staffingindustry.comVisit source
- Reference 6BLSbls.govVisit source
- Reference 7DELOITTEwww2.deloitte.comVisit source