Staffing Industry Analysts (04/14/21)
US temporary staffing revenue will grow by 11% this year to a total of $134.7 billion — surpassing the pre-pandemic level in 2019, according to the “US staffing industry forecast: April 2021 update” report released Tuesday by SIA.
Temporary staffing revenue had fallen by 8% last year as Covid-19 took hold and measures to fight the disease also hit the economy.
SIA’s new forecast assumes strong GDP growth as more people become vaccinated, the economy re-opens and the federal government’s fiscal and monetary measures help spur the economy.
Industrial staffing revenue is projected to grow by 16% after falling by 12% in 2020. Growth drivers include recovery in the manufacturing and hospitality sectors. The report noted a candidate shortage in industrial staffing during the pandemic caused by factors such as skills mismatches and the presence of additional federal unemployment benefits that incentivize candidates to not work.
Separately, direct-hire revenue is projected to rise by 15% this year and retained search revenue is expected to rise by 15% as well.
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