Revenue in the US temporary staffing market is projected to grow 4% in 2018 to a market size of $132 billion, an acceleration from the 3% growth in 2017, according to the new “US Staffing Industry Forecast: April 2018 Update” by Staffing Industry Analysts.

Growth in 2018 was initially forecast for 3%, but SIA increased its projection in this report based on the improving economy.

However, growth is forecast to decelerate to 3% in 2019 as the economic expansion matures and adding increases on top of already record-high numbers becomes more difficult.

“One headwind to temporary staffing market growth has been a scarcity of labor supply, noted in a variety of occupations from construction to highly skilled IT roles,” according to the report. “Consequently, we are at last starting to see broadly (but not universally) reported signs of bill rate increases. Further bill rate increases could support revenue growth and help offset any declines in volume due to labor scarcity.”

The fastest revenue growth in temporary staffing is projected for locum tenens staffing, to growth at 10% this year; it’s followed by education staffing, to grow at 7%. Only one temporary staffing segment will see revenue decline: office/clerical revenue is expected to fall 2%.

SIA corporate members can download the full report.