The thorough documentation throughout 2021 showcased the extreme talent shortages the U.S. has been facing worldwide. In addition, the U.S. job market has been bouncing back from layoffs experienced in 2021, which has led to record-level quit rates amongst employees who are no longer willing to settle for mediocre perks creating widespread labor shortages. Here are the staffing industry statistics for 2022 you need to know to navigate the hiring jungle.
This talent shortage has hurled hiring managers into a frenzy trying to attract and retain quality employees and often seeking help from the experts in sourcing talent and recruiters.
Job seekers in many industries now have their pick of surplus open vacancies across the U.S. The surplus allows them to choose which employers best satisfy their requirements. As a result, we are witnessing trends that attract candidates that will continue in 2022 and into the new year.
Though what other staffing industry trends and statistics must recruiters know? Below is a culmination of staffing industry statistics you should bookmark to understand the current trends.
As a result, you will have much of the industry knowledge needed to stay ahead of the trends for 2022.
Higher Salaries in 2022
- 73% of recruiters reported candidates negotiating for increased salaries in 2022.
- 2022 starting salaries for professional occupations will increase by 3.8% 2022.
- Roles in high demand may see even more significant gains.
Good Benefits and Perks Gives You a Competitive Advantage
- Prospects are less potential to take low-quality benefits from an employer in 2022 when there is so much competition.
- Candidates are leveraging their power to look elsewhere.
- Significant medical/dental coverage (51%) plans have attracted new candidates.
- 41% of 401(k) projects have been effective at attracting new candidates.
Current Staffing Industry Trends
- Work-life balance is now one of the deciding factors for candidates in the U.S. market.
- Offering work-from-home flexibility is a trend set to continue in 2022.
- The trend of remote work in the U.S. can also work in recruiters’ favor in 2022. For example, 18% of hiring managers are willing to search for talent if they cannot source candidates locally.
Comprehensive Insights for the Staffing Industry
- 67% of hiring managers acknowledge it is vital for staffing businesses to utilize the latest technology, and 74% of hiring managers said it is the technology that positions staffing companies apart.
- 40% of hiring managers conveyed they sidestep working with staffing establishments to save money, and 28% think a staffing company would not be capable of employing the positions they need.
- Half of all hiring managers plan to expand their usage of staffing firms in the following five years.
- More than half, 52%, of hiring managers expressed one of their significant challenges in the recruiting approach is acquiring access to candidates with the proper skills.
- 77% of millennial clients intend to supplement their use of staffing companies in the subsequent five years.
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Top Challenges & Benefits
- 20% of staffing workers cite schedule flexibility as a motivation for selecting temporary/contract employment.
- Six in 10 staffing employees, 64%, were found by American Staffing to work in industry between jobs to help them land employment.
- Nearly half of the workers who prefer temporary or contract work do so to achieve permanent employment.
- American Staffing discovered most staffing workers work full time (73%), similar to the overall workforce (74%).
- According to True Blue, individuals declare they want to do temporary work to earn extra income.
- One-fifth (20%) of those choose temporary/contract jobs because of scheduling flexibility.
- Forbes also found that nine out of ten employees remarked that temporary staffing improved their employability.
Impact of COVID-19 & Other Staffing Industry Trends in the United States
- Staffing and recruitment professionals report that 30% of businesses are doing better than or as well as this time last year.
- As the demand for remote workers rises, all the office onboarding (41%), operations (32%), and remote candidate recruiting saw a shift, reported GRID.
- GRID also discussed how 64% of respondents said that remote jobs would be even more common.
- 81% of recruiting companies found reducing job requirements the most challenging part of COVID-19. (GRID)
- Also, Video interviewing and conferencing solutions have seen the most significant rise (91%) in innovative technologies. As a result, staffing companies increasingly use them, according to GRID.
- American Staffing observed more than three-quarters of employed U.S. adults (79%) are satisfied with their employers’ pandemic-related return-to-work plans.
- 14% of healthcare workers are most likely to report that safety is a significant issue in the workplace. According to American Staffing, the pandemic has made them feel insecure on the job.
- Mid-year temporary and contract staffing employment has decreased by 31.6% during COVID-19. (American Staffing)
- The International Labor Organization found staffing provided jobs and professional possibilities for around 13.6 million people during the epidemic.
Recruitment Software In-depth Analysis
- The United States develops around 31% of the global staffing industry earnings, according to Statista, generating the U.S. a top country in the staffing endeavor.
- American Staffing found the hiring of sixteen million temporary and contract workers.
- On any given day, according to ASA-digital, 2.1% of employed adults (3.1 million) are laboring in the staffing industry, with 63% being provisional employees and 37% being contract employees.
- Staffing employees work in all sectors. For example, 36% have industrial professions, 24% are in office-clerical and administrative assignments, 21% are professional-managerial, 11% are in engineering, information technology, and science, and 8% in healthcare.
- Nearly 3,000,000 temporary and contract employees perform for America’s staffing firms during a typical week.
- According to Willis Watson, Temporary employees work full-time in 73% of cases.
- In the U.S., the ASA discovered around 25,000 Recruiting and Staffing Agencies.
- U.S. staffing industry has a market size of $151.8 billion, according to Statista.
- The recent estimate predicts that revenue growth in the staffing business will be 4% in 2022, up from 3% in the April forecast. (Staffingindustry) Past year.
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Recruiting Statistics Research Report
- 40% of employers plan to hire full-time workers, and Career Builder also discovered that 47% look for temporary employees.
- Career Builder saw that 92% of employers say soft skills are critical in determining whether they hire a candidate, and 80% believe soft skills are more crucial than hard skills.
- 40% of respondents said that the most challenging phase of the recruitment lifecycle is sourcing candidates, according to Statista.
- Indeed discovered, 41% of recruiters say entry-level positions are the hardest to fill.
Financial Impact of the Current Staffing Trends on the U.S. Labor Market
- The projected global staffing revenue will decline between 14% and 37% at the highest rate, according to Staffing Industry.
- The expectation of U.S. staffing industry revenue will fall by 21% (Staffing Industry).
- Statista observed the global staffing industry revenue amounted to ~481.2 billion U.S. dollars.
- There are over 20,000 recruiting and staffing companies in the U.S.
- The top five markets in the world were the United States, the United Kingdom, Japan, Germany, and Australia.
Data-Driven Insights to Solve the Biggest Challenges
If you are a recruiter or human resource professional seeking to enter the U.S. staffing industry, now is a great time. If you are already in the U.S. staffing enterprise, you know increased salaries in the market will create an attractive destination for career opportunities. The more elevated the wages of your client means recruiters can significantly improve your margin with a mark-up. In addition, the potential for recruiters when placing candidates will earn you more money.
Particularly within contract staffing, where clients are likely to develop additional contracts. Their inability to find permanent staff results in a steady income stream for recruitment agencies.
As a result, the above statistics should help you prepare a plan based on your company’s growth drivers. With the data from these staffing industry statistics and staffing market report, you now have a head start on new opportunities.
About AkkenCloud’s Recruiting Agency Software
AkkenCloud offers the most comprehensive front-office, middle-office, and back-office staffing software with AkkuPay payroll for staffing agencies and recruiting agencies looking to increase efficiency, streamline operations, and grow revenue.
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