The growth of the staffing industry continues as there was a record revenue over the last year, with more people entering the workforce. If you work with clients in the staffing industry, you already know the importance of selling staffing liability insurance. However, to be a trustworthy resource for your clients, you must stay aware of what’s trending within the industry.
The Staffing Industry Practices
Some risks and exposures may need additional coverage as time passes, and you must know how to reach current and potential clients best.
What Is the Revenue of the Staffing Industry?
The explosive growth of the staffing industry is evident in the data released in the US Staffing Industry Forecast. The Staffing Industry Analysts released the report, forecasting 2022 revenue to reach $185.5 billion. This astounding number is more than $30 billion higher than it was in the pre-pandemic year of 2019. The growth may be because of higher job openings, and a strong US economy. Likewise, there are a growing number of qualified candidates moving back into the workforce.
Industry revenue trends upwards, though the projected growth for 2022 isn’t as remarkable as the growth between 2019 and 2021. Revenue rose nearly 28% in 2021 over 2019. However, the projected numbers for 2022 are just a 5% increase over last year. High wage inflation and strong corporate and consumer balance sheets are helping break these new records in revenue. Thus, with growth expected to increase, higher numbers might arrive in the coming years.
Growth in the Staffing Industry
Technology has played a role in increasing the use of temporary workers in the industry. For the report, the staffing industry included direct-hire workers, temporary help, and retained search individuals.
Out of all the sectors within the industry, IT may have the highest revenue growth concerning temporary staffing assignments. While traveling nursing shows revenue growth of 150% in 2021, the return to post-pandemic normalcy may hit this sector hard. Negative growth may happen later this year.
Unknown Future
The world went into a few years of uncertainty once the pandemic hit, and though many things have begun to move back into motion, the future of the staffing industry might be bumpy. There is an expectation that wage inflation will slow down, but continued supply chain interruptions and problems can also reduce the demand for temporary help. The war in Ukraine may bring some disruption to the industry, further slowing growth in 2023. As the national economy continues to face concerns with inflation and rising interest rates, it could further dampen growth.
The exposures illuminated by the pandemic brought on new insurance and protection concerns, particularly in expanding coverage beyond minimums in stiffening liability insurance. You can give clients more accurate advice on comprehensive insurance coverage with future predictions.
About World Wide Specialty Programs
For the last 50 years, World Wide Specialty Programs has dedicated itself to providing the optimal products and solutions for the staffing industry. As the only insurance firm to be an ASA commercial liability partner, we are committed to that partnership and committed to using our knowledge of the industry to provide staffing firms with the best possible coverage. For more information about Staffing Professional Liability Insurance or any other coverage, we have available to protect your staffing business, give us a call at (877) 256-0468 to speak with one of our representatives.