Why Demand in the Staffing Industry Continues to Rise

2025 Staffing Outlook
The staffing industry is experiencing unprecedented growth, driven by a confluence of economic, technological, and demographic factors. For business owners considering selling their staffing agency, this rising demand creates a prime opportunity to capitalize on a hot market. These trends are shaping the industry and increasing the value of staffing agencies. In this post, we’ll explore the sectors driving demand, the impact of remote work and the gig economy, and how demographic shifts and workforce shortages are fueling sustained growth, supported by data and examples from thriving niches.

Sectors Driving Demand for Staffing Services

Several key sectors are leading the surge in demand for staffing services, creating opportunities for agencies to meet workforce needs:
  • Healthcare: The healthcare sector is facing a critical talent shortage, particularly for nurses and allied health professionals. The U.S. Bureau of Labor Statistics projects a need for 203,200 new registered nurses annually through 2031, driven by an aging population and increased healthcare access. Staffing agencies specializing in healthcare are thriving—hospitals and clinics rely on them for travel nurses, per diem staff, and telehealth specialists. 
  • Information Technology (IT): The tech sector’s rapid growth has intensified the competition for talent in areas like AI, cybersecurity, and software development. Companies are turning to staffing agencies to quickly fill roles like data scientists and cloud engineers, often on a contract basis. According to a 2024 report by CompTIA, the U.S. tech industry added 175,000 jobs last year, with staffing agencies playing a key role in filling these positions. 
  • Finance: The finance sector is also driving demand, particularly for roles like accountants, financial analysts, and compliance officers. With regulatory changes and the rise of fintech, companies need specialized talent to navigate complex financial landscapes. Staffing agencies that can place skilled finance professionals are in high demand. 

The Impact of Remote Work and the Gig Economy

The shift to remote work and the growth of the gig economy have fundamentally changed staffing needs, creating new opportunities for agencies:
  • Remote Work Trends: The pandemic accelerated the adoption of remote work, and this trend has persisted. A 2024 Gallup survey found that 60% of U.S. workers prefer hybrid or fully remote roles. Companies are increasingly relying on staffing agencies to source remote talent, particularly in tech, customer service, and administrative roles. Agencies that can place remote workers globally are seeing significant demand. 
  • Gig Economy Growth: The gig economy continues to expand, with platforms like Upwork and Freelancer reporting a 20% increase in freelance hiring in 2024. Businesses are turning to staffing agencies to source gig workers for project-based roles, such as IT contractors, graphic designers, and marketing consultants. Agencies that specialize in gig staffing are well-positioned for growth. 

Demographic Shifts and Workforce Shortages

Demographic changes and workforce shortages are further driving demand for staffing services:
  1. Aging Workforce and Retirements: The U.S. is experiencing a wave of retirements as Baby Boomers exit the workforce. The U.S. Census Bureau estimates that by 2030, all Baby Boomers will be at least 65 years old, leading to significant gaps in industries like manufacturing, healthcare, and education. Staffing agencies are critical in filling these gaps with younger talent or temporary workers. 
  2. Skills Gap and Talent Shortages: Many industries face a skills gap, where the demand for specialized skills outpaces the available talent pool. In IT, for instance, a 2024 ManpowerGroup report found that 75% of employers struggle to find candidates with the right tech skills. Staffing agencies bridge this gap by sourcing and placing skilled professionals, often on a contract basis. 
  3. Population Growth in Emerging Markets: In regions like the Sun Belt (e.g., Texas, Florida), population growth is driving demand for workers in construction, hospitality, and healthcare. Staffing agencies that operate in these markets are seeing increased demand. 

Growth in Specific Niches: Case Studies and Statistics

Certain niches within the staffing industry are experiencing particularly strong growth, offering insights into where agencies are thriving:
  • Healthcare Staffing: As mentioned, healthcare staffing is booming. A 2024 report by SIA (Staffing Industry Analysts) found that healthcare staffing revenue grew by 18% last year, with travel nursing accounting for a significant portion. 
  • Gig Economy Staffing: The gig economy is a fast-growing niche, with the U.S. gig workforce projected to reach 86.5 million by 2027, according to a 2024 Statista report. Agencies that place gig workers are seeing rapid growth. 
  • Green Industry Staffing: The push for sustainability has increased demand for workers in renewable energy and environmental sectors. 

Capitalizing on Demand for Your Sale
At SAB, we understand the factors driving demand in the staffing industry and how they impact the value of your agency. Whether your agency specializes in healthcare, tech, gig economy, or other industry, we can help you position your business to attract buyers eager to capitalize on these trends. Our database includes active buyers in multiple industries across the US and Canada.

Why Now Is the Time to Sell
The rising demand for staffing services makes 2025 an ideal time to sell your agency. With industry revenue projected to hit $150 billion this year, according to SIA, and buyer interest at an all-time high, you can achieve a premium valuation by acting now.

Ready to sell your staffing agency? Contact SAB today to learn how we can help you leverage this demand for a successful sale. Reach out at Chris@StaffingAgencyBroker.com or (901) 878-2500.