US Staffing Industry Insights: Southern States Surge as Talent Migration Drives Growth in 2024

The United States stands as the foremost staffing market globally. So much so that it contributes to nearly a third of the total global revenues. Its overwhelming influence is underscored by its capacity to surpass the combined revenues of the next three largest staffing markets in Japan, the United Kingdom, and Germany.

After a year of remarkable growth followed, by a slight slowdown in 2023, the US staffing industry is back on track for a prosperous 2024. With insights from PGC we have gathered valuable data to illustrate why the US remains a prime destination for recruitment firms looking to expand their operations.

The US Staffing Industry Forecast for 2024

Despite the temporary decline in 2023, the US recruitment industry is almost $50 billion larger than prior to the pandemic, which may be a result of better pricing for staffing businesses and some inflationary pressure.  According to Staffing Industry Analysts (SIA), the US staffing industry is projected to grow by 3% in 2024, reaching a staggering $207.2 billion - over 4 times more than the UK staffing market. This growth is indicative of the resilience and potential of the US market, making it an attractive prospect for growing recruitment businesses.

Key Sectors

At the forefront of the US staffing industry's trajectory, certain sectors emerge as key drivers of growth and opportunity. Leading the pack is the Tech & IT sector, boasting a $43.2 billion market value and projecting a robust 5% year-over-year increase in 2024. With continuous technological advancements and digital transformation, demand for skilled professionals remains high, making this sector indispensable.

Additionally, Engineering stands out with an impressive 8% growth forecast in 2024, valued at $10.4 billion. Infrastructure projects, innovation, and sustainability initiatives drive the demand for engineering talent, presenting lucrative opportunities for recruitment firms. These sectors, alongside Finance/Accounting, Life Sciences, Education, and Marketing, form the cornerstone of the US staffing industry's expansion and specialisation potential.

Location

Businesses should not see the US as one whole market. Employment gains, domestic migration, taxes, and laws will all differ state by state. The traditional top states for recruitment companies entering the US market are California, New York, and Texas. In recent times, there’s been increasing activity in states in the southern region of the US, most prominently Florida and North Carolina. 

One of the largest contributing factors to this is the migration of talent to southern states, with US Census Bureau statistics showing that between 2021 and 2022, five of the top six states for US state migration were southern. States with the highest population growth include: Tennessee, Georgia, North Carolina, South Carolina, Florida, and Texas.

Why Austin and Miami?

Choosing the right location is crucial for recruitment businesses looking to establish a foothold in the US market. As well as their recent surge in populations and job opportunities, Austin and Miami offer unique advantages, including their vibrant tech ecosystems, thriving business communities, and relatively low costs of living, accompanied by their low state income tax rates. With our trade delegation, you'll gain firsthand insights into these dynamic cities and discover why they are ideal destinations for expansion.

If you are interested in our upcoming trade delegations to Austin, Texas and Miami, Florida you can find more details and registration information on our Trade Delegation page here.