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Employment & Recruiting Agencies in the US Industry Data and Analysis
The Employment and Recruitment Agencies industry surged at an unprecedented rate in the immediate aftermath of the COVID-19 pandemic. A tight labor market with record high quits saw businesses turn to agencies to help fill recruitment gaps, resulting in revenue growth of 52.0% in 2021 alone. The need for workers in this tight labor market translated into higher service prices, supporting record-setting profit growth during the year. However, strong inflation prompted the Federal Reserve to raise interest rates, slowing the pace of expansion. As companies tamped down on recruitment, employment and recruiting agency services saw revenue drop in consecutive years. Nonetheless, agencies have ridden the never-before-seen surge, with industry revenue forecast to rise at a CAGR of 1.8% to reach $32.1 billion through 2025, although the industry is forecast to shrink 6.7% during the current year.Agencies have embraced long-term digital trends and data analytics in decision-making processes. Advanced software tools now enable simultaneous job postings across multiple platforms, broadening their reach and efficiency. Through data analytics, agencies gain valuable insights into candidate behavior and market trends, sharpening their recruitment strategies. However, local social networks are emerging as formidable alternatives, offering direct access to potential candidates, challenging traditional methods. To maintain competitiveness, many agencies are diversifying their services. Agencies have expanded beyond conventional staffing to offer human resource consulting, talent management solutions and tailored recruitment services specializing in specific industries. This shift not only meets the evolving needs of clients, but also positions agencies as multifaceted service providers in a rapidly changing job market.The Federal Reserve is expected to lower interest rates in the coming years despite inflation fears stemming from tariffs initiated by the Trump administration, prompting hiring across the economy to rise at a faster rate. Agencies will be crucial to helping companies staff up in a tightening labor market, as their services remain essential for matching employers with qualified candidates. Industry revenue is forecast to grow at a CAGR of 2.0% over the next five years, reaching $34.4 billion in 2030. As technology continues to dominate the global economy, recruiters specializing in tech talent, especially in high-demand fields like cybersecurity, will be poised for growth. Talent shortages in high-tech fields will persist, making it incumbent on agencies to expand their offerings to include training partnerships and upskilling initiatives.
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What's included in this industry analysis
IBISWorld's research coverage on the Employment & Recruiting Agencies industry in the United States includes market sizing, forecasting, data and analysis from 2015-2030. The most recent publication was released August 2025.
About this industry
What's this industry report about?
The Employment & Recruiting Agencies industry in the United States operates under the NAICS industry code 56131. This industry comprises establishments engaged in listing employment vacancies, referring job applicants to potential employers and assisting companies with employee recruitment and placement. Individuals referred or placed are not employees of the employment agencies. Related terms covered in the Employment & Recruiting Agencies industry in the United States include outplacement services, outsourcing and in-house.
What's included in this industry?
Products and services covered in Employment & Recruiting Agencies industry in the United States include Permanent placement services, Executive search services and Temporary staffing services.
What companies are included in this industry?
Companies covered in the Employment & Recruiting Agencies industry in the United States include Allegis Group, Inc., Linkedin Corp and Randstad Holding NV.
Performance
What's included in the Performance chapter?
The Performance chapter covers detailed analysis, datasets, detailed current performance, sources of volatility and an outlook with forecasts for the Employment & Recruiting Agencies industry in the United States.
Questions answered in this chapter include what's driving current industry performance, what influences industry volatility, how do successful businesses overcome volatility, what's driving the industry outlook. This analysis is supported with data and statistics on industry revenues, costs, profits, businesses and employees.
Products & Markets
What's included in the Products and Markets chapter?
The Products and Markets chapter covers detailed products and service segmentation and analysis of major markets for the for the Employment & Recruiting Agencies industry in the United States.
Questions answered in this chapter include how are the industry's products and services performing, what are innovations in industry products and services, what products or services do successful businesses offer and what's influencing demand from the industry's markets. This includes data and statistics on industry revenues by product and service segmentation and major markets.
Geographic Breakdown
What's included in the Geographic Breakdown chapter?
The Geographic Breakdown chapter covers detailed analysis and datasets on regional performance of the Employment & Recruiting Agencies industry in the United States.
Questions answered in this chapter include where are industry businesses located and how do businesses use location to their advantage. This includes data and statistics on industry revenues by location.
Competitive Forces
What's included in the Competitive Forces chapter?
The Competitive Forces chapter covers the concentration, barriers to entry and supplier and buyer profiles in the Employment & Recruiting Agencies industry in the United States. This includes data and statistics on industry market share concentration, barriers to entry, substitute products and buyer & supplier power.
Questions answered in this chapter include what impacts the industry's market share concentration, how do successful businesses handle concentration, what challenges do potential industry entrants face, how can potential entrants overcome barriers to entry, what are substitutes for industry services, how do successful businesses compete with substitutes and what power do buyers and suppliers have over the industry and how do successful businesses manage buyer & supplier power.
Companies
What's included in the Companies chapter?
The Companies chapter covers Key Takeaways, Market Share and Companies in the Employment & Recruiting Agencies industry in the United States. This includes data and analysis on companies operating in the industry that hold a market share greater than 5%.
Questions answered in this chapter include what companies have a meaningful market share and how each company is performing.
External Environment
What's included in the External Environment chapter?
The External Environment chapter covers Key Takeaways, External Drivers, Regulation & Policy and Assistance in the Employment & Recruiting Agencies industry in the United States. This includes data and statistics on factors impacting industry revenue such as economic indicators, regulation, policy and assistance programs.
Questions answered in this chapter include what demographic and macroeconomic factors impact the industry, what regulations impact the industry, what assistance is available to this industry.
Financial Benchmarks
What's included in the Financial Benchmarks chapter?
The Financial Benchmarks chapter covers Key Takeaways, Cost Structure, Financial Ratios, Valuation Multiples and Key Ratios in the Employment & Recruiting Agencies industry in the United States. This includes financial data and statistics on industry performance including key cost inputs, profitability, key financial ratios and enterprise value multiples.
Questions answered in this chapter include what trends impact industry costs and how financial ratios have changed overtime.
Industry Data
What's included in the Industry Data chapter?
The Industry Data chapter includes 10 years of historical data with 5 years of forecast data covering statistics like revenue, industry value add, establishments, enterprises, employment and wages in the Employment & Recruiting Agencies industry in the United States.
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Frequently Asked Questions
What is the market size of the Employment & Recruiting Agencies industry in the United States in 2026?
The market size of the Employment & Recruiting Agencies industry in the United States is $32.1bn in 2026.
How many businesses are there in the Employment & Recruiting Agencies industry in the United States in 2025?
There are 19,783 businesses in the Employment & Recruiting Agencies industry in the United States, which has declined at a CAGR of 0.4 % between 2020 and 2025.
How may import tariffs affect the Employment & Recruiting Agencies industry in the United States?
The Employment & Recruiting Agencies industry in the United States is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.
How may export tariffs affect the Employment & Recruiting Agencies industry in the United States?
The Employment & Recruiting Agencies industry in the United States is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.
Has the Employment & Recruiting Agencies industry in the United States grown or declined over the past 5 years?
The market size of the Employment & Recruiting Agencies industry in the United States has been growing at a CAGR of 1.8 % between 2020 and 2025.
What is the forecast growth of the Employment & Recruiting Agencies industry in the United States over the next 5 years?
Over the next five years, the Employment & Recruiting Agencies industry in the United States is expected to grow.
What are the biggest companies in the Employment & Recruiting Agencies industry in the United States?
The biggest companies operating in the Employment & Recruiting Agencies industry in the United States are Allegis Group, Inc., Linkedin Corp and Randstad Holding NV
What does the Employment & Recruiting Agencies industry in the United States include?
Operating casting agencies or bureaus and Operating employment agencies or registries are part of the Employment & Recruiting Agencies industry in the United States.
Which companies have the highest market share in the Employment & Recruiting Agencies industry in the United States?
The company holding the most market share in the Employment & Recruiting Agencies industry in the United States is Allegis Group, Inc..
How competitive is the Employment & Recruiting Agencies industry in the United States?
The level of competition is moderate and increasing in the Employment & Recruiting Agencies industry in the United States.
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