SIA’s research enables you to see what the future may hold for staffing. It helps inform you on what jobs will be most in demand and how you can prepare your program for what’s next. Through our biannual staffing industry forecast, we take a look at what’s in store for the ecosystem and the impact on buyers of staffing services.
“Our latest forecast illustrates the strong growth in demand for staffing services in today’s market,” says Barry Asin, president of SIA. “Enterprise buyers of contingent labor should expect to face a highly competitive labor market where candidates of all skill levels have multiple job opportunities and are able to increasingly attain higher wages.”
According to the May 2022 forecast update, the US staffing industry is projected to grow 5% this year, up from $177.1 billion in 2021, which was an extraordinary 28% higher than 2020 industry revenue and nearly 16% higher than pre-pandemic 2019.
Meanwhile, staffing firm technology, which is advancing ease of use for enterprise buyers and candidates, will expand the available pool of talent.
SIA’s US forecast provides growth estimates for a dozen occupational segments of temporary staffing plus direct hire and retained search. It also dives into the macro factors that affect the forecast analysis and provides commentary on trends for each segment.
Headwinds. The report takes into account the headwinds that staffing and the economy face — including rising interest rates, continued supply chain problems, slowing wage inflation, and disruptions and sanctions related to the war in Ukraine. Looking to 2023, the US staffing industry will likely experience a more subdued macroeconomic environment with GDP growth predicted to decelerate to 2.2%.
Regional fluctuations. Thirty-eight states experienced a drop in employment over the two-year period between February 2020 and February 2022, while only 12 states reported employment growth. Some of the states with the strongest job gains were Utah, Idaho, Montana and Texas. Key considerations are the mix of industries present, the loss of tourism, unemployment benefit policies, Covid vaccination rates and public health restrictions, and net migration since the start of the pandemic. It is especially important for programs to now evaluate and benchmark their operations using regional data appropriate for the micro economic areas in which they operate.
Occupational outlook. What jobs see continued demand? IT developers, cybersecurity roles, QA positions, and business/data analysts are the roles SIA sees multiple opportunities for. If you want to get these scarce resources on your team, look to shorten the candidate review and interview process. There is also high demand across clients in manufacturing, logistics, retail, construction and hospitality. The industrial segment may benefit from the federal infrastructure spending bill that passed in November 2021 that designates $550 billion for transportation, broadband and utilities. Healthcare continues to charge ahead with shortages due to absences and attrition (caused by burnout, retirements and quits) and pent-up demand for healthcare services.
Published twice a year, the US Staffing Industry Forecast is the go-to resource for workforce program managers, executives and the suppliers that support them. The full report is available to SIA CWS Council members and corporate members.
The US staffing industry will reach a record $185.5 billion this year, far surpassing the pre-pandemic market size of $152.8 billion in 2019. Use SIA’s forecast to see the future and prepare your program for it.