Understanding the US Staffing Industry & Revenue
Many of us have either used or will use the services of a staffing agency during our lifetime to either search for a suitable career, part-time position or to be placed at a temporary job. However we often overlook the business, economic and social impact this one hundred and twenty-four billion ($124 billion dollar in 2012) industry has in the United States and our local community.
According to report published in the Staffing Industry journal conducted by the Addison Group, there are one hundred and five (105) staffing firms in the Unites States that have annual revenue exceeding one hundred million dollars. These one hundred and five staffing firms have approximately 54.1% of the total market share and have combined revenue of over seventy billion ($70 Billion) dollars in the US alone in 2012.
The current state of the US Economic Recovery & the Staffing Industry
Since the end of the Great Recession, which severely impacted the US and Global economy, things have turned around slowly. The US economy has been steadily expanding for more than five years. Many critics say that the economic recovery was extremely sluggish because it took the about five years to recover all the jobs that were lost during the course of the eighteen (18) month long the recession and slowdown. Labor force participation is at the lowest it has been in decades, yet the employment rate has declined to the previous normal levels.
The staffing and recruiting industry on the other hand has shown tremendous resilience during this recovery period. The industry saw an unprecedented growth during this time unlike any other recovery period. The Great Recession which was determined to be the worse blow to the US and global economy since World War II lasted eighteen months, whereas all the other ten (10) recessions since the World War II lasted only ten (10) months.
In our next segment we will analyze the factors and variables that led to the speedy and robust recovery of the Staffing and Recruiting industry and why it fared so much better than the overall economy.
- National Bureau of Economic Research, Business Cycle Dating Committee, announcement of June 2009 as the end of the recession that began in December 2007, Sept. 10, 2010.
- Staffing Industry Analysts, Timothy Landhuis, Research Analyst at the Addison Group June 27, 2013