A new study confirms what many had suspected - that the biggest staffing firms have been grabbing greater market share than their smaller counterparts in recent years, a new report from Staffing Industry Analysts shows.
The analysis showed the 15 largest staffing companies have grown by an average of 2.3 percentage points every year since 2007. This scale is determined by revenue growth each year. When the top five firms were studied, each grew by an average of 1.3 percentage points in the studied period.
The report also indicated that market share among the 15 biggest companies operating in the U.S. had grown to 44 percent in 2011, compared with the same market share from these companies in 2007. When the study began six years ago, the five largest staffing firms together had a market share of 20 percent, but by 2011, this number had grown to 25 percent.
One of the major standout points in the report, however, was the difference in market share reported by these companies in 2008 and 2009. In the first year, the largest firms saw market share stay flat, while in the next year, it soared.
"This might be the result you'd expect" said Theo Vadpey, who penned the report. "In a recession, some firms fail, and in turn, the firms that survive receive a larger share of the market."
However, surrounding the stronger market share of the largest firms was news that the number of temporary employment jobs fell around the country in January. Last month, temporary positions fell by 8,100 after steadily rising since September, data from the Bureau of Labor Statistics show.
Some experts have noted that this may be the beginning of a change in the temporary labor sector, as more companies turn to a cost per unit labor approach to hiring, which ensures a candidate is well suited for the position.