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Staffing Services Industry
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Industry Analysis

SIC CODES: SIC and NAICS codes are industry standard codes that describe an industry's basic categorization. Established in the United States in 1937, it is used by government agencies to classify industry areas. The SIC system is also used by agencies in other countries. In the United States the SIC code is being supplanted by the six-digit North American industry Classification System (NAICS code).
7359
NAICS CODES: SIC and NAICS codes are industry standard codes that describe an industry's basic categorization. Established in the United States in 1937, it is used by government agencies to classify industry areas. The SIC system is also used by agencies in other countries. In the United States the SIC code is being supplanted by the six-digit North American industry Classification System (NAICS code).
561311 , 561312 , 561320
Related Industries:
Consulting Services
Human Resources Consulting Services
Executive Search Services
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Description

Companies in this industry provide temporary staffing, outsourced HR management, and employee placement services. Major companies include Allegis, Kelly Services, ManpowerGroup, and Robert Half International (all based in the US), along with Adecco (headquartered in Switzerland) and Randstad (the Netherlands).

Competitive Landscape

Companies compete to fill talent pools with skilled employees. Some companies may concentrate on manual labor or administrative skills, while others specialize in scientific, IT, or professional attributes. Talent shortages can be problematic, and some staffing firms provide training to enhance skill sets. The success of recruitment programs helps to secure major contracts with large commercial or government clients. During economic downturns, clients typically reduce employment of temporary employees before conducting permanent staff layoffs. Pricing competition, which is stiffer among providers of clerical and industrial personnel, may intensify during periods of economic instability.

Products, Operations & Technology

The US industry is divided into three major segments: temporary help services (about 50% of industry revenue), professional employer organizations (about 45%), and placement agencies (about 5%). By volume of jobs, temporary help services accounts for 81% of employees, followed by PEOs (10%) and executive search services (9%).

Geographic Segmentation

See where the Staffing Services industry is concentrated geographically and research companies by financials and key corporate data.
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