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US temp staffing market forecast to grow 3% in new SIA update

September 17, 2018

Revenue in the US temporary staffing market is projected to grow 3% this year and 3% in 2019, reaching $131 billion in revenue next year, according to the new “US Staffing Industry Forecast: September 2018 Update” released by Staffing Industry Analysts on Sept. 11. In April, growth for 2018 was forecast to be 4%. The reduction to 3% growth this year was mainly driven by slower growth projections for the healthcare staffing segment.

SIA also noted a headwind created by a scarcity of labor supply.

“Consequently, we are at last starting to see broadly (but not universally) reported signs of bill rate increases,” the report states. “Further bill-rate increases could support revenue growth and help offset any declines in volume due to labor scarcity.”

Total US staffing market — which includes temporary staffing as well as place and search — will rise 4% to $147.8 billion this year and 3% in 2019, reaching $152 billion next year.

The projected 3% growth for the US temporary staffing market in 2018 belies the difference in trends among the various occupational segments, from declines in office/clerical to high single-digit growth in multiple segments. Performance also varies by location.

The strongest revenue growth in temporary staffing is projected for education staffing and marketing/creative staffing, with both projecting 7% growth this year as well as next year; locum tenens staffing is expected to grow 7% this year followed by 6% in 2019. Only one temporary staffing segment will see revenue decline: office/clerical revenue is expected to fall 2% this year and 1% next year.

SIA corporate members can download the full report online.

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