Double-digit Increases Predicted in 2021 

Mountain View, California — April 10, 2020 — Staffing Industry Analysts (SIA), the global advisor on staffing and workforce solutions has released its latest US Staffing Industry Forecast report. Published twice annually, the US Forecast report provides market size estimates and growth forecasts for the entire industry, as well as for twelve broad occupational segments of temporary staffing, and direct hire and retained search.

With the current Covid-19 outbreak bringing a sudden halt to ten consecutive years of staffing industry growth, 2020 will see a drop in US staffing revenue across most skill segments. Given the unprecedented global spread of the Coronavirus and the difficulty in predicting the timeline for curtailing the outbreak, SIA has outlined three scenarios in the US forecast report: one assuming a shorter outbreak of the virus, a base case, and one projecting a longer outbreak with more sustained economic impact.

In the base case scenario, SIA projects a 21% decline in total staffing revenue for 2020, with the US staffing market predicted to reach $119.4 billion in total revenue this year, down from $151.8 billion in 2019. The only staffing skill segments projected to grow revenue in 2020 are related to healthcare: travel nurse (5%), per diem nurse (4%), and locum tenens (5%).

“As has historically been the case, the staffing industry is on the leading edge when there are changes and uncertainty in the economy,” said Barry Asin, SIA President. “While we forecast a sharp decrease in 2020 for staffing, as the Covid-19 epidemic comes under control we can expect an equally rapid increase for staffing as businesses ramp up to meet resurgent demand.”

US Staffing Industry Revenue Growth, April 2020 Forecast (Base Case Scenario)

Although SIA projects double-digit declines for temporary staffing and place & search (which is comprised of direct hire and retained search) for 2020, we anticipate a return to growth in 2021 as the overall economic picture improves.

“While it appears that the US staffing industry will experience a significant revenue contraction this year, we note that the unprecedented amount of federal government aid being extended via the CARES Act and other measures has the potential to significantly soften the blow for many staffing firm owners and employees.” said Timothy Landhuis, SIA’s Director of Research, North America. “As some of these aid opportunities are time sensitive, staffing firm owners and executives may wish to carefully examine these options as part of their strategic navigation of their firm this year.”

The full US Staffing Industry Market Estimates and Forecast: April 2020 Update report is available for SIA Corporate and CWS Council Members.

About Staffing Industry Analysts (SIA)

SIA is the Global Advisor on Staffing and Workforce Solutions
Elevating the Workforce Solutions Ecosystem
Founded in 1989, SIA is the global advisor on staffing and workforce solutions. Our proprietary research covers all categories of employed and non-employed work including temporary staffing, independent contracting and other types of contingent labor. SIA’s independent and objective analysis provides insights into the services and suppliers operating in the workforce solutions ecosystem including staffing firms, managed service providers, recruitment process outsourcers, payrolling/compliance firms and talent acquisition technology specialists such as vendor management systems, online staffing platforms, crowdsourcing and online work services. We also provide training and accreditation with our unique Certified Contingent Workforce Professional (CCWP) program.

Known for our award-winning content, data, support tools, publications, executive conferences and events, we help both suppliers and buyers of workforce solutions make better-informed decisions that improve business results and minimize risk. As a division of the international business media company, Crain Communications Inc., SIA is headquartered in Mountain View, California, with offices in London, England.

Media Contact
Jennifer Arcuni, Communications Director, Staffing Industry Analysts
jarcuni@staffingindustry.com  |  +1 650-390-6171  |  www.staffingindustry.com