We include snippets from Staffing Industry Analysts research to focus on trends that shape and grow your business. Corporate members have access to the full reports online.
Trends affecting the market in 2019
In 2019, the global economic expansion is expected to become the longest since the end of the Second World War. And while the Economist Intelligence Unit expects 2019 to remain strong, risks such as US protectionism, a slowdown in Chinese manufacturing and Brexit could be exacerbated by a prolonged fall in stock markets, cyber-attacks, military confrontations in the Korean peninsula and/or the Middle East, and a potential collapse in oil prices.
But the ongoing business environment uncertainty should continue to be a boon for the temporary staffing industry, according to SWOT analysis from SIA. A key reason for hiring a temporary worker is to cope with an uncertain business issues — holiday or maternity cover, sickness, seasonal peaks and troughs, or a new project getting underway. In addition to the SWOT analysis, the SIA report covers trends that will affect the staffing industry in 2019: the global economy, technology/automation, skills shortages, legislation, gig economy, public perception, procurement sophistication and the rise of Asia.
M&A transactions return to pre-recession levels
Merger and acquisition activity of staffing firms headquartered in North America rose 27% year over year in 2018, representing a return to pre-recession deal volumes.
Activity gravitated toward firms that specialize in either professional staffing, which was up 18% year over year, or commercial staffing, which was up 38% year over year.
Meanwhile, healthcare and IT staffing firms constituted the largest share of the transactions, at 24% and 15% of deal volumes, respectively.
US firms see 10% growth in December
SIA Pulse survey participants saw a median 10% year-over-year growth in US temporary staffing revenue in December 2018, up from November’s 7%. Average sales difficulty and recruiting difficulty levels each decreased overall. The Pulse survey of staffing firms is conducted every two months. Corporate members can view a high-level summary of the resulting reports, while participating companies receive a more detailed report.