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The temporary recruitment landscape looks very different in the US compared to the UK —especially when it comes to market size, growth and profit-making potential. While both the UK and USA rely heavily on temporary workers, the scale and demand differ substantially. Before venturing stateside, it’s important to understand the differences between the two markets.
The US is home to the largest staffing market in the world, with over 2 million temporary and contract workers engaged on a weekly basis. Temporary staffing represents a growing share of the total workforce, especially in sectors like industrial, office and clerical, administrative and engineering.
In contrast, although temporary recruitment in the UK is well established, it’s comparatively smaller. According to REC (Recruitment & Employment Confederation), the UK market reported a dip in temp billings in 2024 due to economic uncertainty and stricter hiring budgets.
According to the Recruitment and Employment Confederation (REC), the demand for temporary workers in the UK experienced a decline throughout 2024. A trend that was influenced by economic uncertainties, increased labour costs, and cautious hiring practices among employers.
In the US, temporary recruitment is gaining traction across multiple industries. According to the American Staffing Association (ASA) the following sectors have experienced growth in the fourth quarter of 2024:
This sector represents the largest share of staffing employment, accounting for 36% of temporary workers.
Comprising 24% of staffing employees, this sector continues to rely heavily on temporary staffing solutions.
Making up 21% of staffing employment, this sector includes roles in management and specialised professional services.
These technical fields collectively account for 11% of staffing employment, indicating a steady demand for specialised temporary workers.
Staffing agencies in the US typically apply higher markups on pay rates, leading to gross margins often in the range of 25–35%, compared to 15–25% in the U.K. This is because clients in the U.S. are more accustomed to value-based pricing, especially in skilled sectors like IT, healthcare, and finance.
Benefits such as healthcare and pension are state provided, so there is no opportunity to include healthcare costs in the assignment rate. UK clients are also more price sensitive and procurement-led.
While the UK temp market remains active, the USA currently offers greater scale, growth, and profit-making potential. For recruitment agencies expanding internationally, it’s the market to watch, and here’s why:
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