As we step into 2025, the U.S. recruitment market offers unprecedented opportunities for UK-based agencies looking to expand their horizons. Its vast market size and lucrative margins alone make the US market a top choice. Whether you’re an established agency looking to scale or a new player exploring international markets, the US offers a fertile ground for growth.
Market size
The size and spending power of the U.S. consumer base can be a big draw for international players. With a market value exceeding $200 billion in 2024, the US recruitment market stands in stark contrast to that of the UK, particularly in terms of competition. In the UK, approximately 33,000 recruitment businesses serve a population of 70 million. Meanwhile, the US, with its 360 million residents, is served by only around 25,000 recruitment firms.
Projections for 2025, expect the staffing market to grow by 5%, promising a number of opportunities for new firms entering the market.
Why UK recruiters should explore the US contract market
Talent Pool and Margin Potential
The demand for top-tier talent in the US often outstrips local supply, creating golden opportunities for international recruiters. US companies, eager to secure skilled professionals, are open to exploring global talent pools—making UK recruiters a valuable partner in addressing these shortages.
What makes the US market even more appealing are the higher placement fees. While UK recruiters might typically earn 15–20% of a candidate’s first-year salary, US fees often range from 20–30%, particularly in senior and specialized roles. This significant margin difference can quickly boost profitability and ROI for UK agencies.
Why perm only recruiters should start US contract
Faster Hiring Processes
In the US, most employment contracts are called ‘at will’, meaning they have basic employment terms outlined in a contract with no real notice period. Compared to the UK, the US hiring process is often faster and more flexible. Companies are less encumbered by lengthy notice periods (commonly two weeks in the US versus one to three months in the UK) and are more inclined to act swiftly to secure top talent.
This efficiency allows UK recruiters to work at a faster pace, enabling them to close deals quicker and scale their operations more effectively. The quicker turnaround not only enhances productivity but also provides a better experience for candidates and clients alike.
Why going solo in US contract recruitment makes sense
A Strong Support Network
Navigating new laws and financial implications is often a major obstacle to launching operations in a new country. In the United States, the complexity is heightened by each state operating like an independent entity with its own set of laws. However, in today’s world, numerous organizations specialize in compliance, administrative support, and funding, effectively addressing many of these challenges.
Employer of Record services like Lead & Gain, along with funding solutions, have made entering the US recruitment market easier than ever by reducing legal and financial risks. These support systems make the US market more accessible and less daunting, even for agencies new to the region.
Five essential partners that can support your business in the US recruitment market
Whether you’re an established agency looking to scale or a new player exploring international markets, the US offers a fertile ground for growth.
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 – book a call today.