A Snapshot of the Current US Recruitment Market
The US recruitment and staffing industry can be highly profitable and attractive for international recruiters, given the size and demand for talent across various sectors.
The US has a vast job market, encompassing numerous industries and sectors. With a population of over 330 million people, there is a constant demand for talent across various roles and skill sets. The size of the market presents significant opportunities for recruitment agencies to facilitate successful placements and capitalize on higher margins, relative to other countries.
According to Staffing Industry Analysts, the US staffing industry generated $218 billion (about $660 per person in the US) in 2022.
Agencies that can effectively identify and place candidates with specialized expertise often command premium fees and can achieve higher profitability. It’s also worth mentioning that the US recruitment industry is not nearly as saturated as other markets, such as the UK recruitment market. With fewer recruitment companies and a much larger and diverse talent pool, the US is a great market to expand into.
There is 12,554 employment and recruitment agencies in the US in 2023.
The US job market is diverse, with employers often seeking specialized talent to meet their specific needs for specific points in time. This creates a demand for niche recruitment agencies that focus on temp/contract recruitment for specific industries or skill sets.
As the workforce evolves in the US and globally, executives are evolving their strategy to keep up. Employers are turning to temp and contract talent to deliver on key projects for shorter amounts of time, rather than only relying on permanent hires. With a looming recession and talent shortages, it’s beneficial for employers to leverage the contingent workforce to reduce costs and increase workforce flexibility.
80% of executives are looking to add US contingent talent to their team.
The future of the contingent workforce in the US is bright. Employers will continue to increase demand for contingent workers, and more US workers are opting for freelance and contract work. The gig economy in the US is becoming an increasingly important part of the overall US labor market.
According to the American Staffing Association, 16 million temp and contract workers are hired by US staffing agencies every year, and 3 million temp and contract workers work for US staffing agencies during an average week.
As an international recruiter, it’s a great time to capitalize on the demand for contractors in the US. The growing US contract recruitment industry presents a significant opportunity for recruiters who are looking to expand their offering in a new market and increase revenue streams.
Getting started in the US recruitment market doesn’t need to be difficult. Working with a trusted employer of record (EOR) is a great place to start- as these third-party experts take care of onboarding, compliance, payroll, timekeeping, and more for your US workforce. Learn more about the benefits of working with an EOR.
Disclaimer: This post is provided for informational purposes and should not be considered legal advice, the final word on this topic or a political opinion.