Labor Costs Surge in First Quarter, Fueling Inflation

Staffing Industry Analysts (05/09/22)

The US staffing industry is projected to reach a record $185.5 billion in revenue this year, according to the new “US Staffing Industry Forecast” report released by Staffing Industry Analysts.

That will eclipse the pre-pandemic market size of $152.8 billion in 2019.

“Growth in the US staffing industry is currently being driven by a strong US economy, strong consumer and corporate balance sheets, a record number of job openings, improving supply of candidates as the pandemic wanes, and a high pace of wage inflation,” according to the report. “We also believe technology advancements at staffing firms are leading to greater ease of use by clients and candidates, serving to further expand the volume of temporary workers participating in the industry.”

For the report, the staffing industry includes temporary help, direct hire and retained search.

Industry revenue had risen 28% year over year in 2021 and the projected revenue number for 2022 represents 5% growth over 2021. However, travel nursing is expected to show negative growth this year after posting revenue growth of 150% in 2021.

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