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With the US being home to the world’s largest staffing market, it’s no surprise that many UK recruitment agencies are heading stateside to tap into new opportunities. If you're one of them, here are some key employment law differences to keep in mind as you expand across the pond.
Although there are thousands of staffing agencies across the country, from national giants like Robert Half, Randstad, Kelly, and Adecco to smaller, specialised firms. There is no single agency that dominates. The top 10 firms collectively account for less than 40% of the market, leaving plenty of room for regional players, niche specialists, and tech-driven start-ups to thrive. If you target the right niche or innovate in delivery (think remote recruitment, AI-based screening, or same-day pay) there’s significant potential for profit and growth.
According to the American Staffing Association (ASA), several sectors showed notable growth in the final quarter of 2024. Recruitment agencies with insight into regional labour trends or who focus on high-growth industries, such as biotech, renewable energy, or SaaS, are well positioned to outperform larger, less specialised competitors:
Representing the largest share of staffing employment, this sector accounts for 36% of all temporary workers.
The amount of PTO, overtime rules, like UK auto-enrolment pensions or US state-level PTO laws.
At 21%, this segment includes management roles and other specialist positions.
These technical fields collectively comprise 11% of temporary employment, reflecting a sustained need for skilled professionals.
Certain US states stand out for their high concentration of temporary and contract workers as a proportion of their overall workforce:
South Carolina: 3.3%
Illinois: 3.2%
Tennessee: 3.1%
Georgia: 2.8%
New Jersey: 2.8%
Indiana: 2.7%
Alabama: 2.7%
Kentucky: 2.7%
North Carolina: 2.6%
Michigan: 2.5%
Based on ASA’s regional data, here’s where demand is strongest:
Southeast (e.g. South Carolina, Georgia, Alabama): Manufacturing, logistics, and construction.
Midwest (e.g. Illinois, Indiana, Michigan): Automotive manufacturing, warehousing, and healthcare.
Northeast (e.g. New Jersey): Pharmaceuticals, finance, and administrative services.
While there’s strong opportunity in the US market, there are some challenges to consider:
In low-skill general staffing such as light industrial, clerical, and warehouse roles, margins are tight and competition is fierce. Cost and speed often drive buying decisions.
Many large companies use Managed Service Provider (MSP) and Vendor Management System (VMS) frameworks, working only with preferred vendors. Breaking in can be tough without a truly unique value-add.
Coastal cities and major metro areas (e.g. New York, Los Angeles, Chicago, Miami, San Francisco) have a high concentration of staffing firms. Success here often requires a clearly differentiated service or pricing model.
Our team of experts have got you covered, get in touch for further information.
