10 Staffing Industry Statistics That Will Surprise You
September 28, 2021
With each passing year, the use of temporary staffing agencies has become more and more popular. Staffing agencies allow companies to bridge their skill gaps, allow for greater cost flexibility, and let them avoid situations where they might be understaffed. These companies recognize that temporary employees are reliable solutions, allowing them to adapt with greater speed to a changing work environment.
It’s also an industry that is currently undergoing a lot of change and growth. Below are some fascinating statistics that give an insight into what these changes are. We were even caught off guard by some of these! Let’s take a look.
1. About 3.1 million People are Working in the Staffing Industry Every Day
Temporary employees make up about 2.1% of the U.S. workforce, which equals roughly 3.1 million people. While small in comparison to the rest of the workforce, its growth has outpaced overall economic and employment growth. Of these temporary workers, 63% are temporary employees, while 37% are contract workers.
2. 73% of Temporary Employees Work Full-Time
There’s a common misconception that most temporary employees are only working part-time. In fact, it’s the opposite with 73% of temp workers being employed full-time. This is roughly on par with the number of permanent employees that work full-time (74%).
3. 16 million Temporary Employees are Hired Every Year
It’s an astounding number that gives proof of just how important staffing agencies are to businesses. Without their services, many businesses would struggle to find, recruit and train new employees when going through a major expansion or just to fill in for permanent employees that are ill or on leave.
4. 64% of Staffing Agencies Believe Remote-Jobs will be More Common Post-COVID-19
In the last year, we’ve seen a huge growth in the number of people working from home. Looking to save money on office space, many companies have also recognized that many jobs previously done on-site can be done perfectly well from a remote location.
In a recent survey of more than 800 global staffing agencies, 64% believe that this trend will continue, even once the full effects of the pandemic have passed. This is good news for employees who prefer to work remotely and a signal to staffing agencies that they need to take this into account when planning for the future.
5. 56% of Recruiters Say that New Skill Tests are the Top Trend Impacting How They Hire
Huge advances in AI and automation technologies have revolutionized almost every job sector in recent years. For staffing agencies, it’s made the process of finding, screening, and assigning temporary workers far easier and quicker. Research by LinkedIn found that 56% of hiring managers believe that skill tests are the top trend impacting how they hire. It’s one of many reasons why it’s in every staffing agency’s best interests to ensure they stay up-to-date with the latest recruiting and tracking software.
6. 20% of Staffing Employees Cite Schedule Flexibility as a Reason for Choosing Temporary Work
With remote working really starting to take off, more employees are recognizing the benefits of temporary staffing. It allows for a great deal of flexibility in choosing job assignments that is sure to become more noticeable in the coming years.
7. There are About 25,000 Recruiting and Staffing Agencies in the U.S.
Taken together, U.S.-based staffing agencies operate in around 49,000 offices across the country. In addition, 56% of companies and 76% of offices are in the temporary and contract staffing sector.
8. Staffing Employees Work in Virtually Every Sector in Every Industry
The number of temporary employees that work in different sectors can be broken down as follow:
· 36% Industrial
· 24% Office, Clerical, and Administration
· 21% Professional Managerial
· 11% Engineering, Information Technology, and Scientific
· 8% Health Care
9. 64% of Temporary Employees Work in the Industry as a Stopgap Between Jobs or to Help Them Land a New Job
For anyone that’s currently between jobs, staffing agencies can be the bridge that leads to your next assignment. It’s highly flexible and can lead to a permanent position if that’s what you’re looking for. About 35% of temporary employees were offered a permanent position by the clients they worked for. Sixty-six percent of them accepted these offers. (American Staffing Association)
10. Nine Out of 10 Employees said Temporary Staffing Made Them More Employable
Being a temporary worker can come with a lot of unexpected benefits. One of the most surprising is that it can make you more employable in the long term. With each new assignment, you’ll have a new reference to add to your resume.
From all the above statistics, we can see that the staffing industry is a huge market and one that continues to grow with each passing year. The effects of the pandemic have left a lot of changes but there’s also been a technological leap in recent years that has brought this industry into the 21st century. With that in mind, it’s clear that for a staffing agency to succeed these days, they need the latest in tracking and recruitment technologies.
Timerack provides that through its time and attendance software, payroll integrations, and HR services. With it, you can automate much of the work that goes into running a staffing agency, leaving you to focus on more important issues.