Growth 

The U.S. staffing industry saw cautious optimism in 2024, with a modest projected growth rate of 3%, reaching an estimated market value of $207.2 billion. Economic stabilization following a period of inflation and rising interest rates contributed to this rebound, although the growth was less robust compared to earlier years. Temporary staffing remained the largest segment, particularly in IT and technology, healthcare, and professional services, reflecting ongoing demand for skilled and flexible workforces. 

US Presidential Elections  

During election year, businesses often face uncertainty about future economic policies, and they often delay hiring or capital investment until there’s more clarity on the outcome. The uncertainty surrounding elections has historically made companies more cautious about committing to long-term hiring plans. This “wait and see” approach meant that hiring was expected to slow down in the months leading up to the election as companies assess which candidate might win and what policies will follow. With this said, many international companies recruiting in the US had to keep that in mind, as the effects were felt unevenly across industries.  

The elections also made jobseekers more cautious, with 45%, according to a survey by Aerotek, saying that they believed the elections would have an impact on their career, and 46% indicating that they’d prefer to wait until 2025 to pursue new job opportunities. Moreover, another survey found that one in four jobseekers saying they are postponing or extending their job search due to election uncertainty. 

FTC’s Ban on Non-Competes 

In April, the Federal Trade Commision announced that a new rule banning non-compete agreements would take effect in September. The ban was expected to generate over 8,500 start-ups annually, increase worker wages by $524 per year on average, and lower healthcare costs by up to $194 billion over the next decade. It boosted hopes for increased workforce mobility, which would have allowed recruiters greater access to skilled candidates who were previously restricted. Due to legal challenges the FTC could not enforce the Rule at this time, and it did not go into effect in September as initially anticipated.  

Natural disasters  

Natural disasters like hurricanes significantly impact recruitment by creating immediate and long-term disruptions in labor markets, workforce availability, and industry-specific hiring needs. While it’s not possible to quantify the ‘net effect’ on the jobs total, the Bureau of Labor Statistics noted the impact of storms Helene and Milton. The BLS noted that the survey responses for the survey of establishments, which shows the headline nonfarm payrolls gain, was “well below average” and in fact the lowest in more than 30 years, but said that was the case both for areas hit by the storm as well as those outside the zone.

Technological Advancements

Technological advancements have an impact on the staffing process every year, particularly in recruitment and onboarding. Tools for candidate sourcing, resume screening, and video interviewing streamlined operations, allowing agencies to improve efficiency and reduce administrative burdens. Automated chatbots significantly improved the candidate experience by handling FAQs, scheduling, and initial screenings. They offered 24/7 engagement, reduced bias, and freed up recruiters for more complex task. 

Looking ahead 

Historically, employment growth tends to pick up in the year following an election, which is expected to benefit recruitment businesses across the board. According to projections from Staffing Industry Analysts, the industry is set to grow by 5% in 2025. If you’re considering expanding your recruitment business to the U.S., get in touch with our team today.