The US may be headline news thanks to the second Trump administration, but for the staffing sector, it’s a big-ticket destination that has made it a huge topic of conversation of late. Yes, last year was tough for recruitment in the States, as it was in most countries. However, if we look ahead, there are some incredibly promising signs. As Apsco highlighted in its recent US spotlight, the staffing market is growing. Forecasts from Staffing Industry Analysts suggest that 5% growth is on the cards this year. There are some sectors that are performing better than others. IT, life sciences, pharmaceuticals, healthcare, banking, finance and energy, for example, are all showing promising signs.

For staffing firms in the UK, opportunities across the pond are becoming increasingly attractive. However, making the move isn’t a simple step. The makeup of the market in the States is complex. Here’s what recruiters need to know to make it work for their business.

Treat Each State Differently

America is unlike any other country not only due to its sheer size but also the nuances across interconnected states. This means that recruiters must be able to adapt to the language and cultural differences to engage with clients and candidates. Even neighboring locations have significant differences. The Texas Triangle, for example, consists of three major metro areas: Dallas-Fort Worth, Austin-San Antonio corridor and Houston — all with very different cultures and demographics.

Then there’s the legal nuances to consider. Tax and employment legislation across federal, state and local levels differ significantly. Firms can’t replicate all compliance procedures from one state to the next and be assured that they are covered.

It’s All About the Destination

This complexity makes it critical that recruitment businesses chose their destinations wisely when making the first leap into the US market. However, there is more to consider than compliance and, of course, where the best opportunities can be found — that’s a given.

During our US trade delegation last year, it became abundantly clear that the destinations that used to be hugely appealing for consultants and end clients alike have experienced a talent drain of late. New York and similar traditional metro areas are losing out to the suburbs and destinations such as Charlotte, Austin and Florida, for example. That’s not to say that the likes of New York aren’t attractive. The Big Apple remains a prime location for a number of sectors that require highly skilled workers, including finance, legal and professional services.

However, the continued shifting demographics means that the best opportunities to both win new business and recruit consultants are increasingly being found in locations that some may be less familiar with. Some of the up-and-coming destinations include California, Texas, Florida and North Carolina. This will, however, continue to evolve and tracking domestic migration trends as well as economic strengths across states will be crucial in the US market in the years ahead, particularly when such significant political shifts are afoot.

Navigating the Trump Administration Changes

Of course, the big elephant in the room is the impact of plans outlined by President Donald Trump for his second term. At the time of this writing, the greatest concern for non-US based staffing businesses is the potential tariff increases for UK and European firms, which are yet to be defined. However, it does suggest that for those looking to tap into the US market, having boots on the ground both figuratively and in terms of a “US business” entity, could be the best way to profit from the economic stability and growth in the States.