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40 Staffing Industry Statistics for 2021

40 Staffing Industry Statistics for 2021

There are many reasons why temporary staffing is getting more popular, primarily because companies use staffing companies for flexibility. Temporary employees allow a company to hire for a specific project or length of time while not having to commit to full salary and benefits long-term. As the world is embracing a new landscape, the staffing industry has been setting people up to work from home, investing in and using new recruitment technologies, and adjusting to a completely unfamiliar environment. 

In this articlewe go over the main facts and statistics of this vital industry.  

COVID-19 and Staffing Industry Trends

  • 30% of staffing and recruitment professionals report that their businesses are doing better than or as well as this time last year (GRID, 2020) 
  • As the demand for remote workers is on the rise, alongside it all the office operations (32%), onboarding (41%), and remote recruiting of candidates are also seeing a shift (GRID, 2020) 
  • 64% of respondents said that remote jobs are and will be even more common (GRID, 2020) 
  • 81% of recruiting companies found the reduction in job requirements the most challenging part of COVID-19 (GRID, 2020) 
  • Video interviewing and video conferencing solutions have seen the largest rise (91%) in innovative technologies that staffing companies have started using (GRID, 2020) 
  • More than three-quarters of employed U.S. adults (79%) are satisfied with their employers’ pandemic related return-to-work plans (American Staffing, 2020) 
  • Health care workers (14%) are most likely to report that nothing will make them feel safe on the job during the pandemic (American Staffing, 2020) 
  • Mid-year temporary and contract staffing employment during COVID-19 is 31.6% lower than the year before (American Staffing, 2020) 

Clients and the Staffing Industry

  • 67% of hiring managers believe it is important for staffing companies to use the latest technology, and 74% of hiring managers said that it is technology that sets staffing companies apart (Career Builder, 2018) 
  • 40% of hiring managers reported they avoid working with staffing firms to save money, and 28% believe a staffing company would not be able to hire the positions they need (Career Builder, 2018) 
  • Half of all hiring managers intend to increase their use of staffing firms in the next five years (Career Builder, 2018) 
  • More than half (52%) of hiring managers say one of their main challenges in the recruiting process is gaining access to candidates with the right skills (Career Builder, 2018) 
  • 77% of millennial clients plan to increase their use of staffing companies in the next five years (Career Builder, 2018) 

Challenges and Benefits of Staffing

  • 20% of staffing employees cite schedule flexibility as a reason for choosing temporary/contract work (American Staffing) 
  • Six in 10 staffing employees (64%) work in the industry between jobs or to help them land a job (American Staffing) 
  • Almost half of employees who choose temporary or contract work do so in the hopes of gaining permanent employment (ASA-Digital, 2019) 
  • Most staffing employees work full time (73%), comparable to the overall workforce (74%) (American Staffing) 
  • The No. 1 reason people say they want to do temporary work is to earn extra income (True Blue, 2019) 

Industry Overview

  • The United States generates around 31% of the global staffing industry revenue, which makes the U.S. a leading country in the staffing industry (Statista, 2019) 
  • 16 million temporary and contract workers are hired throughout the year (American Staffing) 
  • On any given day, 2.1% of employed adults (3.1 million) are working in the staffing industry, with 63% being temporary employees, and 37% are contract workers (ASA-digital, 2019) 
  • Staffing employees work in all sectors, 36% have industrial occupations, 24% are in office-clerical and administrative positions, 21% in professional-managerial, 11% in engineering, information technology and scientific, 8% in health care (American Staffing) 

Financial Overview of the Staffing Industry

  • Global staffing revenue is projected to decline between 14% and 37% in 2020 (Staffing Industry, 2020) 
  • U.S. staffing industry revenue is expected to fall by 21% in 2020 (Staffing Industry, 2020) 
  • The global staffing industry revenue amounted to 481.2 billion U.S. dollars in 2019 (Statista, 2019) 
  • There are over 20,000 staffing and recruiting companies in the U.S. (Murray Resources, 2018) 
  • The top five markets in 2018 were the United States, the United Kingdom, Japan, Germany, and Australia (WEC Global, 2020) 

Recruiting Statistics

  • 40% of employers plan to hire full-time workers, 47% are looking for temporary employees (Career Builder, 2019) 
  • 92% of employers say soft skills are a key factor in determining whether they hire a candidate, and 80% believe soft skills are more of equally important as hard skills (Career Builder, 2019) 
  • 40% of respondents said that the most challenging phase of the recruitment lifecycle is sourcing candidates (Statista, 2020) 
  • 41% of recruiters say entry-level positions are the hardest to fill (Indeed, 2017) 

Amid a massive economic slowdown, the staffing industry which establishes and builds connections between clients and workers is even more important.