Staffing Industry Stats and Market Analysis

This article was written by our expert who is surveying the staffing industry and constantly updating the business plan for a recruitment agency.

Who wrote this content?

The Dojo Business Team

A team of financial experts, consultants, and writers

We're a team of finance experts, consultants, market analysts, and specialized writers dedicated to helping new entrepreneurs launch recruitment agencies. We help you avoid costly mistakes by providing detailed business plans, accurate market studies, and reliable financial forecasts to maximize your chances of success from day one—especially in the recruitment agency market.

What is the current global market size, and how has it changed in five years?

The staffing and recruitment agency market is about $650 billion in 2025, up from roughly $550 billion in 2023.

Growth was mixed across the past five years: expansion through 2023, a contraction in 2024, and a rebound in 2025 near 5% as delayed projects restart and hiring normalizes. For a recruitment agency entrant, this means pent-up demand exists in healthcare and IT after 2024 softness.

Plan a measured ramp: validate client demand by vertical and structure flexible costs to ride cyclical swings. Build a pipeline that blends temp/contract and perm to smooth revenue.

We cover this exact topic in the recruitment agency business plan.

Which regions and countries hold the largest share, and where is growth fastest?

EMEA holds about 40% of global staffing revenue, the Americas around 35%, and APAC roughly 24% with the fastest growth.

The U.S. dominates the Americas (about 91% of regional revenue), while the U.S., Japan, and the U.K. together exceed half of global revenues. APAC leaders—China, India, Indonesia, Vietnam, and the Philippines—show double-digit growth bands.

For a recruitment agency, APAC offers the most aggressive expansion runway, while the U.S. and Europe offer scale and enterprise accounts. Calibrate entry by sector readiness and compliance complexity.

Get expert guidance and actionable steps inside our recruitment agency business plan.

What are the most recent annual growth rates globally and regionally?

Global growth in 2025 is projected around 5% after a 2024 dip.

The U.S. is expected to rebound about 5% in 2025 after roughly –10% in 2024; Europe trends low to mid-single digits with Southern Europe leading; APAC outperforms with several markets in the mid-teens.

For your recruitment agency, use conservative baselines in mature regions and higher targets in APAC niches with proven client demand. Link recruiter capacity to verified job order velocity.

This is one of the strategies explained in our recruitment agency business plan.

Which staffing sectors are expanding fastest, and which are declining?

Healthcare and IT are the strongest global growth engines in 2025.

Industrial/manufacturing temp softened in 2024 but remains sizable and is stabilizing into 2025; telecom and tech services are buoyed by digital transformation spend. Local demand pockets vary by regulation and demographics.

For a new recruitment agency, prioritize healthcare travel and per-diem, allied health, nursing, and IT contract roles (cloud, data, cybersecurity). Keep a diversified book to hedge cyclicality.

You’ll find detailed market insights in our recruitment agency business plan, updated every quarter.

What is the average revenue per staffing firm, by region and segment?

Average revenue per recruitment agency is highest in mature markets like North America and Western Europe.

Temporary staffing dominates revenue mix (e.g., ~89% of U.S. staffing revenues), so firms with strong contract books show higher throughput per desk. Exact averages vary widely with specialism, client size, and bill rates.

Benchmark your target by vertical: IT and healthcare typically yield higher revenue per consultant than office/clerical. Build rate cards and MSP/VMS strategies early.

It’s a key part of what we outline in the recruitment agency business plan.

How many temporary and contract workers are employed worldwide, and what share of the workforce do they represent?

The contingent workforce is large and expanding across major economies.

Illustratively, the U.S. had ~2.5 million workers employed via staffing companies in 2023, while the EU counts tens of millions of temporary workers with a significant workforce share; APAC participation is rising quickly. This expanding pool supports agency growth in contract and temp-to-perm models.

For your recruitment agency, prioritize redeployment programs to lift lifetime value and fill rates. Use candidate portals and automated check-ins to keep your bench engaged.

This is one of the many elements we break down in the recruitment agency business plan.

What are the latest trends in permanent placement vs. temporary staffing demand?

Temporary and contract staffing still drive the majority of agency revenues globally.

Perm hiring demand is smaller but recovering in select sectors; clients prefer flexible headcount to manage macro uncertainty and project cycles. Perm spikes occur in growth verticals and with strategic roles.

Design your recruitment agency’s mix to be contract-first with targeted perm for margin upside. Use contract-to-hire pathways to convert when budgets open.

Get expert guidance and actionable steps inside our recruitment agency business plan.

How are AI and digital marketplaces reshaping recruitment agencies?

• AI sourcing reduces time-to-submit and increases qualified shortlist density.
• Programmatic ads and marketplaces expand reach and lower cost-per-applicant.
• Screening automation (skills, coding, credentials) improves match precision.
• Chatbots and self-serve portals lift candidate NPS and recruiter productivity.
• Workforce management tech (timesheets, compliance) trims back-office cost.

Which regulatory changes in the last two years most impacted staffing, and where are changes expected?

• Europe tightened and clarified temporary worker protections and agency obligations, affecting contract design and payroll processes.
• Several markets advanced rules around platform/gig work, influencing classification and benefits handling.
• Credentialing and licensing tightened in healthcare staffing, raising compliance costs but improving quality.
• Data privacy and AI-use disclosure standards increased, impacting sourcing tech and vendor selection.
• Future shifts are expected around gig-work status, cross-border contracting, and AI governance in hiring.

What profit margins and cost structures are typical for recruitment agencies in different markets?

Margins vary widely by region and segment, with pressure from compliance and tech costs.

Contract staffing gross margins reflect pay/bill spreads and statutory burdens; perm fees carry higher gross margins but lumpier cash flow. Scaling ops with automation and offshore support helps protect EBIT.

For your recruitment agency, model gross margins by desk: IT and healthcare contracts often yield stronger spreads than clerical; invest in vendor tech where ROI > 3–6 months. Track DSO and working capital tightly.

You’ll find detailed market insights in our recruitment agency business plan, updated every quarter.

Who are the largest global staffing companies, and what share do they hold?

A handful of global groups lead industry revenues.

What are the key forecasts for staffing industry growth over the next three to five years?

The global staffing market is forecast to grow at roughly 4–7% CAGR through 2028–2030.

Growth is propelled by demographics (aging, shortages), digital transformation, and wider acceptance of contingent labor. APAC is expected to outpace mature markets, with healthcare and IT leading segment growth.

For your recruitment agency, align offerings to these structural drivers: build healthcare and IT desks, add RPO/light MSP, and develop offshore/onshore delivery. Stress-test plans against regulatory and rate-pressure scenarios.

This is one of the strategies explained in our recruitment agency business plan.

Can you summarize regional shares, growth rates, and hot sectors in one place?

Use this consolidated view to select your recruitment agency’s first two verticals and target geographies.

Which sectors/specializations are expanding most quickly, and which are declining?

Healthcare and IT are expanding fastest globally in 2025, with strong demand for specialized skills.

Can you show recent growth rates by selected countries in APAC and Europe?

These examples illustrate the pace leaders your recruitment agency can target first.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are encouraged to consult with a qualified professional before making any investment decisions. We accept no liability for any actions taken based on the information provided.

Sources

1. Talent Intelligence — Global Staffing Market Outlook 2025
2. QX Global Group — Global Staffing Market Trends
3. LinkedIn/Yochana — Staffing Market Size & Growth 2025
4. Dataintelo — Recruitment & Staffing Market Report
5. LinkedIn — Global Staffing Status (May 2025)
6. Workwell Global — Staffing Industry Trends 2025
7. Carv — Staffing Industry Benchmarks
8. Precedence Research — Healthcare Staffing Market
9. American Staffing Association — Statistics
10. Statista — Staffing Industry Worldwide