US Staffing Industry Revenue to Dip by 3% in 2024

According to the latest insights from a comprehensive report by SIA (Staffing Industry Analysts), the US staffing industry is poised to witness a slight contraction in revenue by 3% this year, amounting to $184.6 billion. This projection comes in the wake of a turbulent period marked by unprecedented highs during the pandemic and subsequent adjustments as the economy gradually stabilizes.

One notable contributing factor to this anticipated decline is the normalization of travel nurse revenue, which surged dramatically during the pandemic but is now expected to decrease by 20% this year. Excluding the impact of travel and per diem nurse revenue, the overall staffing industry is projected to experience a marginal contraction of just 0.3% year-over-year.

Comparatively, the industry experienced a significant 15% decline in 2023, indicating a shift towards stabilization following the extraordinary growth witnessed in 2021 and 2022, primarily driven by government spending in response to the pandemic.

Several factors contribute to this trajectory, including:

• Slowdown in demand attributed to higher pay rates
• Economic challenges faced by sectors reliant on temporary staffing like manufacturing.

Delving deeper into specific segments, SIA forecasts a 5% decrease in industrial staffing revenue, while office/clerical segments are expected to remain relatively stable. IT staffing revenue is also projected to see a 3% decline.

Despite these challenges, there are notable areas of growth within the industry. Education temporary staffing is anticipated to expand by 7% this year, with engineering staffing following closely with a projected growth of 6%.

Looking ahead to 2025, SIA predicts a positive trajectory for the US staffing industry, with revenue expected to rebound by 3% to reach $189.9 billion. Commercial segments are anticipated to lead this recovery, while most professional segments, barring healthcare, are expected to experience a mid-single-digit expansion.

The road to recovery for the staffing industry remains dynamic, with various economic and sector-specific factors influencing its trajectory. However, amidst challenges, opportunities for growth and adaptation continue to emerge, underscoring the resilience of the industry in navigating evolving landscapes.