5 reasons why UK recruitment companies are moving to the US

Why are more UK recruitment companies looking to expand in the U.S.? With only 20,000 recruitment agencies in the US compared to over 30,000 in the UK there’s certainly an opportunity to grow your business. Here are a few reasons as to why so many agencies are making the move over to the US:

1. Opportunity

   The opportunity in the US is incomparable to the UK. With the US recruitment industry worth an estimated $207 billion, that’s over 4 times the size of the UK market. According to the latest Staffing Industry Analysis report. (SIA), there also doesn’t seem to be any signs of the market slowing down, with most economists projecting a real GDP growth of over 2% in 2024.

2. Talent Pool

   With the US population 5 times that of the UK, the US boasts a wide range of talent. This means it’s easier to fill more specialised vacancies, with more specific sectors allowing recruitment agencies to carve out their niche.

3. Higher Margins

   With agency margins in the UK ranging between 15-25%, the facts are showing that US agency margins are ranging between 25-45% depending on sector, the figures speak for themselves proving a very attractive offer.

4. Diversifying Revenue

   In challenging economic times, you can’t undervalue the use of having diverse revenue streams. The IMF forecasts that economic growth in the UK during 2024 will be around 0.5%, compared to 2% in the US. This gives welcome reassurance to agencies, all but ensuring growth whether that be in Europe or America.

5. Faster processes

   In the US, most employment contracts are called ‘at will’, meaning they have basic employment terms outlined in a contract with no real notice period.  By comparison, in the UK employees are legally required to have a notice period from 1 week all the way up to 3 months. This means that its much easier for workers to move between contracts, which ultimately makes it quicker for agencies to fill vacancies.

If the above is sounding like a reason for you and your business to explore placing candidates in the US then come and talk to PayStream International. Our employer of record service could be the perfect fit for you.


We ensure that candidates are employed compliantly and paid on time, every time saving you the cost, investment and difficulty of setting up a new entity abroad.  Allowing you to focus on what your business does best - recruiting and placing candidates.