Industrial staffing revenue is set to contract 10% this year to $38.1 billion before returning to growth in 2025, according to the US Staffing Industry Forecast: September 2024 Update report.

Overall, the US staffing industry revenue is projected to decline 10% this year to reach a market size of $189.0 billion, according to a new report by SIA. That’s a deeper decline than the 3% projected in March, though the industry is projected to return to growth in 2025.

Several factors contributed to this year’s projected fall in revenue.

“The decline has been driven by widespread client caution and project delays, a depressed manufacturing sector, falling bill rates in sectors such as healthcare and employer and worker heightened preferences for permanent positions over temporary positions,” according to the report.

Travel nurse staffing is forecast to post the largest decline this year with revenue falling 30%. Per diem nursing revenue will slip 11%, while allied healthcare revenue will decline by 18%.

Healthcare isn’t the only segment posting a decrease. IT staffing revenue is forecast to fall by 7% this year.

For next year, however, the report forecasts growth in all segments.

Corporate members of SIA can download the full US Staffing Industry Forecast: September 2024 Update.