MOUNTAIN VIEW, Calif., May 14, 2015 /PRNewswire/ -- The U.S. temporary staffing industry is projected to grow 6% in 2015 to reach $115 billion and expand another 5% in 2016 to reach an all-time high of $121 billion, according to the U.S. Staffing Industry Forecast, a semi-annual report released recently by Staffing Industry Analysts. The report, based on staffing company revenues, serves as a benchmark for the staffing industry, charting the size and growth of temporary staffing skill segments.
Skill Segment Trends
The U.S. Staffing Industry Forecast is comprised of 10 different skill segments and all are forecasted for growth in 2015. Education, a relatively small and emerging segment, has the highest growth forecast at 15% as education continues to experience a surge in demand from K-12 school districts turning to staffing firms to hire substitute teachers. Engineering has the lowest growth forecast at 3% due to the lack of recovery in employment since the recession and a downturn in oil and gas exploration and production. Healthcare, IT, finance/accounting and marketing/creative all show 7% increases. The remaining segments of office/clerical, industrial, legal and clinical/scientific segments are also expected to grow.
Gross domestic product (GDP) growth is the biggest driver and most important predictor of growth in the overall U.S. staffing industry. The forecast is based on Staffing Industry Analysts' expectation that U.S. GDP growth will accelerate to 2.9% in 2015, representing the fastest growth in a decade.
The forecasted growth rates for the U.S. temporary staffing industry are based on estimates of volume growth in the number of temporary workers placed, along with projections of growth in average bill rates. The growth in bill rates can be attributed to accelerating wage inflation due to lower unemployment rates and fewer available candidates. Minimum wage increases in several states are projected to have a ripple effect of boosting pay and bill rates in the industrial and office/clerical staffing skill segments. In addition, bill rates in the industrial and office/clerical staffing skill segments have risen due to pass-through of new administrative and health insurance costs related to the Affordable Care Act (ACA) employer mandate which took effect January 1st, 2015.
While the likelihood of a recession occurring in 2015 or 2016 is low, an unexpected downturn in the overall economy remains the most severe risk to the forecasted growth rates of the industry, according to the report.
"At a projected size of $115 billion this year, the U.S. temporary staffing industry plays a vital role in today's economy," said Timothy Landhuis, research manager at Staffing Industry Analysts. "On a given work day, roughly three million Americans are employed in the industry, delivering work across nearly all sectors and occupations, with over half of industry revenue coming from temporary workers in professional skill sets--including IT, healthcare, and engineering professionals. Our U.S. Staffing Industry Forecast report provides a highly-informed view on the size and growth outlook of the temporary staffing industry as a whole and for its ten key skill segments."
The latest U.S. Staffing Industry Forecast report is based on some of the most robust segment-level revenue trend data ever assembled by Staffing Industry Analysts and industry projections are based on detailed segment-level revenue data collected from more than 100 of the largest staffing companies in the U.S. In addition, Staffing Industry Analysts' segment-specific research analysts dedicated to the IT, healthcare, and industrial segments provide an enhanced depth of analysis on those topics in the report. For more than 25 years, Staffing Industry Analysts has worked with leading staffing firms to provide insights on industry growth rates and has published the U.S. forecast since 1995.
About Staffing Industry Analysts
Staffing Industry Analysts is the global advisor on contingent work. Known for its independent and objective insights, the company's proprietary research, award-winning content, data, support tools, publications and executive conferences provide a competitive edge to decision-makers who supply and buy temporary staffing. In addition to temporary staffing, Staffing Industry Analysts also covers related staffing sectors. The company provides accreditation with its Certified Contingent Workforce Professional (CCWP) program. Founded in 1989, acquired by Crain Communications Inc. in 2008, the company is headquartered in Mountain View, California, with offices in London, England. For more information: www.staffingindustry.com.
SOURCE Staffing Industry Analysts