Take a look at the latest staffing statistics to see the impacts of the pandemic and how the industry responded and rebounded. Then leverage this data to grow your staffing business faster with key insights and staffing marketing tips.
Statistics about the makeup of the staffing industry
According to americanstaffing.net, most people working in temporary roles in the staffing industry work full time (73%), and more than six out of 10 are doing so in-between jobs or in order to find a temp-to-hire position. Virtually every industry in the United States has opportunities for staffing agencies, as workers are placed into the following:
- 36% industrial (warehouse, distribution, manufacturing, and other supply chain businesses)
- 24% into office clerical/admin roles
- 21% into professional or managerial roles
- 11% into technical industries, e.g., engineering, information technology, science, and so on
- 8% health care
What’s more, opportunities abound as we’ve seen not just one but multiple waves of resignations. Workers have opted to change positions for several reasons during the past three years, including health and safety concerns, quality of work-life decisions, and moving up to better opportunities. For more details, check out our article of marketing ideas for staffing agencies for the great return-to-work era.
2020-2022 staffing statistics
Staffing agencies were hit hard at the height of the pandemic, experiencing industry losses of nearly 20% in 2020. In 2021, the industry began to recover with revenue growth of around 16%, and it is estimated that this growth will continue to increase an additional 4% in 2022.
- The financial impact of the pandemic led to 19.5% losses* for the staffing industry in 2020
- In 2020, when the shutdowns began, Q2 the staffing industry fell 33.6%*
- Staffing industry revenues rebounded, growing 16% in 2021
- The staffing industry is continued to grow 4% in 2022
Staffing statistics show that hiring and recruiting is more competitive than ever post-Covid-19 when many workers were laid off and others left their jobs, some blaming bad company culture and a lack of benefits provided by employers. For some ways to address this, read our list of 15 recruitment marketing ideas.
Salaries are up, and there’s no relief in the talent shortage
In 2022, there is a worldwide talent shortage due to candidates becoming more demanding when it comes to expected salaries, benefits packages, and other employment perks. They are not willing to settle, and it has made it difficult for companies to recruit new employees.
- Salaries are projected to increase 3.8% in 2022 (and potentially more due to massive inflation)
- 47% of businesses said they had jobs they couldn’t fill in a NFIB January 2022 survey
- Of these, 40% are for skilled workers and 22% have openings for unskilled workers
- 64% of construction businesses with openings reported that they had no (or few) qualified applicants applying to openings
- The current shortage of workers could create 85 million unfilled roles—nearly $8.5 trillion in lost revenue if the talent shortage can’t be turned around by 2030 (Korn Ferry study)
Many companies are turning to staffing agencies for this reason, causing growth in this industry. With salaries set to increase by an average of 3.8% in 2022, staffing agencies that are able to successfully fill these openings could experience strong revenue growth as higher salaries mean larger margins when placing candidates.
Many workers want to stay remote
The demand for remote work will continue to increase nationwide in 2022, due to candidates valuing flexibility. Many do not want to work in an office full-time and some are still concerned about being in close proximity to others with Covid-19 still lingering. This digital.com article tells the tale:
- 51% of workers say they’re more productive working remotely
- Lack of time spent commuting, alone, has increased US productivity by 5%
- Reasons cited for wanting to stay remote include caring for pandemic-gained pets (75%), desire to watch TV while working (73%), freedom to nap or exercise during the day (72%), concerned about appearance and going back to work in-person (62%)
Recruitment and staffing companies can take advantage of this, as remote work means candidates from other cities or even states can be considered for many open positions. Online interviews have increased and have proven to be efficient, and they just make sense with remote jobs being so popular.
When it comes to finding talent, the search for recruits has expanded to include a wider range of candidates. No longer are job-search giant websites the only place to connect companies with people looking for jobs, as employers and agencies are turning to social media sites like Twitter, Instagram and sometimes TikTok to find candidates according to Jobvite in 2021.
Staffing agencies have had success reaching younger candidates this way and have been able to build their brands in the meantime. In addition to broadening their search horizons, employers are no longer seeking out candidates based solely on rigid job descriptions but are looking for candidates with great skill sets who are ready to be trained for their new roles. Staffing agencies should be investing in intelligent software to search for and find the best candidates.
The staffing agency has and will continue to experience growth, with no shortage of employers looking to fill positions or high-quality candidates for those roles. With a competitive job market, it is important for agencies to stay ahead of the trends in order to find success in 2022.
Leave a Reply
Want to join the discussion?Feel free to contribute!