Temporary staffing agency revenue is projected to exceed pre-pandemic levels based on the latest forecast released by Staffing Industry Analysts. In the April 2021 Staffing Industry Forecast, SIA projects that the US temporary staffing industry will grow by 11% in 2021 compared to a 8% decline in 2020.
Looking Back on 2020
2020 was undoubtedly and unprecedented, traumatic year for the US economy. Throughout 2020, Avionté tracked staffing industry trends week over week to quantify the pandemic’s affects on talent, assignment, and hours data points. The COVID-19 pandemic clearly affected the economy as a whole, especially specific industry sectors such as hospitality and manufacturing. However, the pandemic also proved beneficial for other verticals, such as IT and healthcare. Overall, the pandemic’s effects on the economy were not as detrimental as analysts originally anticipated. Staffing industry revenue declined 8% in 2020, a number much more mild than initially predicted.
Staffing Agency Revenue Growth in 2021
The resilient IT and healthcare sectors are expected to remain strong in 2021 while the more vulnerable verticals are forecasted to bounce back. Combined, the staffing agency revenue in the US is projected to exceed 2019 levels this year. The areas expected to see the biggest growth and recovery are education, manufacturing, and hospitality. Analysts also expect direct hire placements to rise by 15%. Industry analysts expect vaccinations and federal aid to be the major catalysts for recovery.