Market Watch: Employment Services Industry

Industry Segments
The employment services industry has three distinct segments:
? Employment placement agencies list employment vacancies and place permanent employees.
? Temporary help services, also referred to as temporary staffing agencies, provide employees to other organizations, on a contract basis and for a limited period, to supplement the workforce of the client on a seasonal basis or in the absence of permanent employees.
? Professional employer organizations (PEOs) are engaged in providing human resources and human resources management services to staff client businesses. They also manage other human resources functions of its clients on a contract basis. (Source: BLS)





By the Numbers
? $81.9 billion ? total U.S. temporary and contract staffing sales and permanent placements for 2005 (Source: ASA)
? $51 billion ? approximate gross revenues professional employer organizations generate annually (Source: NAPEO)
? 12.1 million ? net number of employees U.S. staffing firms hired in 2005, taking into account the high turnover (more than 300%) inherent with temporary and contract work
? 5.5 million ? number of employees who remained in the work force and moved on to permanent jobs in 2005
? 2.9 million ? average number of temporary and contract workers America's staffing companies employed per day in 2005 (Source: ASA)
? 1.6 million ? number of new jobs the employment services sector, one of the nation's fastest growing industries, is expected to gain between 2004 and 2014 (Source: BLS)
? 15% ? percentage of U.S. Businesses with 25 or more employees that obtained staffing services in 2005.
? 35.1% ? the percentage of temporary and contract workers in the industrial sector, the largest occupational category for such employment. Professional-managerial accounts for 21% and office-clerical 20.4%. (Source: ASA interpretation of 2001 BLS data)

Sources: American Staffing Association (ASA), Bureau of Labor Statistics, National Association of Professional Employer Organizations (NAPEO)

For more complete information on the Employment Services Industry, click here to read "Now Hiring Distributors ? Inquire Within" in the September issue of Promotional IMPRESSIONS.