Will 2024 be the Dawn of US Staffing?

After a 15% decline in US staffing revenue in 2023, what’s in store for 2024 and 2025? Let’s find out!

A new report by SIA predicts that the US revenue will shrink by 3% in 2024 amounting to a total of $184.6 billion. However, after 2 years of constant dip in revenue, 2025 seems to be like the light at the end of the tunnel. SIA predicts, the US staffing industry revenue will grow 3% to $189.9 billion in 2025. Also, the commercial segments will also return to growth in that year, while most professional segments other than healthcare will experience a mid-single-digit expansion.

What are the Factors Behind US Staffing Revenue Dip?

1. Travel nurse revenue played a big part in driving the overall US staffing revenue decline. Travel nurse revenue continues to normalize after its pandemic highs and is expected to decrease by 20% for this year.

2. Another reason can be the US staffing industry normalizing after the extraordinary upticks in 2021 and 2022 brought on by government spending due to the pandemic.

3. Higher pay rates have also reduced client demand and sectors with high usage of temps, such as manufacturing, seeing difficulty in the economy.

Industry Wise Dip In Revenue

According to SIA’s revenue forecast by segment:

• Industrial staffing revenue will drop by 5% this year.
• Office/clerical staffing revenue will remain steady.
• IT staffing revenue will decline by 3%.

However, there are positive trends in other segments:

• Education temporary staffing is expected to grow by 7%.
• Engineering staffing is expected to increase by 6%.

The Global Staffing Industry by Regions

In 2023, the global staffing market fell by 5% to $626 billion but is expected to grow by 2% to $637 billion in 2024. The Americas and EMEA made up 34% and 41% of global revenue, respectively, with APAC accounting for 25%. The Americas’ staffing market was $210 billion, with the US contributing $191.1 billion.

Conclusion

Despite a challenging 2023 and a predicted 3% decline in 2024, the US staffing industry is set for a 3% rebound in 2025. Growth in education and engineering sectors offers a positive outlook. As the market normalizes post-pandemic, understanding these shifts is crucial. For staffing companies, this means staying adaptable and strategically positioning themselves to leverage emerging opportunities in the coming years.