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This Staffing Industry Report webinar is graciously sponsored by…
©2017 by Crain Communications Inc. All rights reserved.
©2017 by Crain Communications Inc. All rights reserved.
Staffing Industry Report Webinar June 2017
Tony GregoireDirector of Research,The Americas
Timothy LandhuisResearch Manager
Brian WallinsSr. Research Analyst
David FrancisSr. Research Analyst
Fiona CoombeDirector, Legal & Regulatory Research
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Staffing Industry Report Webinar June 2017
©2017 by Crain Communications Inc. All rights reserved.
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©2017 by Crain Communications Inc. All rights reserved.
Agenda
If you are having trouble with the sound, you may dial into the call by dialing 1-650-479-3208 and using access code 664 525 236.
• Economic and Employment Trends
• M&A Database
• Legal Update
• Human Cloud
• A Tour of the Global Staffing Market
• IT Staffing Survey Results
• Q&A, etc.
©2017 by Crain Communications Inc. All rights reserved.
Employment up 138K in May, up 1.6% y/y
©2017 by Crain Communications Inc. All rights reserved.
Sources: US Bureau of Labor Statistics and Staffing Industry Analysts
0
50
100
150
200
250
300
350
400
May-2015
Aug-2015
Nov-2015
Feb-2016
May-2016
Aug-2016
Nov-2016
Feb-2017
May-2017
Tho
usa
nd
s
Total Nonfarm Employment Monthly Change
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
May-2015
Aug-2015
Nov-2015
Feb-2016
May-2016
Aug-2016
Nov-2016
Feb-2017
May-2017
Total Nonfarm EmploymentYear-Over-Year Change
Employment trends by industry
©2017 by Crain Communications Inc. All rights reserved.
Sources: US Bureau of Labor Statistics and Staffing Industry Analysts
-1.0% 0.0% 1.0%
InformationGovernment
Retail TradeWholesale Trade
ManufacturingTransp. & Ware
Financial ActivitiesProf. Serv. (ex. temp help)
ConstructionHealth
Leisure and hospitalityOther Services
EducationTemporary Help
N. Resources/mining
Percent Change in Employment: May/April
-10.0% 0.0% 10.0%
InformationRetail Trade
ManufacturingGovernment
Wholesale TradeOther Services
Transp. & WareFinancial Activities
Leisure and hospitalityHealth
EducationProf. Serv. (ex. temp help)
ConstructionN. Resources/mining
Temporary Help
Percent Change in Employment:Year-over-Year
Temp help employment up 13K in May, up 4.9% y/y
©2017 by Crain Communications Inc. All rights reserved.
Sources: US Bureau of Labor Statistics and Staffing Industry Analysts
-50
-40
-30
-20
-10
0
10
20
30
40
May-2015
Aug-2015
Nov-2015
Feb-2016
May-2016
Aug-2016
Nov-2016
Feb-2017
May-2017
Tho
usa
nd
s
Temporary Help EmploymentMonthly Change
0%
1%
2%
3%
4%
5%
6%
May-2015
Aug-2015
Nov-2015
Feb-2016
May-2016
Aug-2016
Nov-2016
Feb-2017
May-2017
Temporary Help EmploymentYear-Over-Year Change
Penetration rate at record 2.064% in May,but not even 2 basis points above 17 months ago
©2017 by Crain Communications Inc. All rights reserved.
Sources: US Bureau of Labor Statistics and Staffing Industry Analysts
1.96%
1.98%
2.00%
2.02%
2.04%
2.06%
2.08%
May-2015
Aug-2015
Nov-2015
Feb-2016
May-2016
Aug-2016
Nov-2016
Feb-2017
May-2017
Temp. Agency Penetration Rate
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
Temp. Agency Penetration Rate (Long-Term)
Unemployment at 4.3% in May
©2017 by Crain Communications Inc. All rights reserved.
Source: US Bureau of Labor Statistics, National Bureau of Economic Research & Staffing Industry Analysts
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
11%
May
-20
06
No
v-2
006
May
-20
07
No
v-2
007
May
-20
08
No
v-2
008
May
-20
09
No
v-2
009
May
-20
10
No
v-2
010
May
-20
11
No
v-2
011
May
-20
12
No
v-2
012
May
-20
13
No
v-2
013
May
-20
14
No
v-2
01
4
May
-20
15
No
v-2
015
May
-20
16
No
v-2
016
May
-20
17
National Unemployment Rate
Recession Unemployment Rate
Quit rate plateauing near pre-recession levels
©2017 by Crain Communications Inc. All rights reserved.
Source: US Bureau of Labor Statistics, National Bureau of Economic Research & Staffing Industry Analysts
1.0%
1.5%
2.0%
2.5%
Sep
-20
06
Mar
-20
07
Sep
-20
07
Mar
-20
08
Sep
-20
08
Mar
-20
09
Sep
-20
09
Mar
-20
10
Sep
-20
10
Mar
-20
11
Sep
-20
11
Mar
-20
12
Sep
-20
12
Mar
-20
13
Sep
-20
13
Mar
-20
14
Sep
-20
14
Mar
-20
15
Sep
-20
15
Mar
-20
16
Sep
-20
16
Mar
-20
17
National Quit RateTrailing 12 Months
Recession Quit Rate
More openings than hires
©2017 by Crain Communications Inc. All rights reserved.
Source: US Bureau of Labor Statistics, National Bureau of Economic Research & Staffing Industry Analysts
0
1,000
2,000
3,000
4,000
5,000
6,000
Sep
-02
Mar
-03
Sep
-03
Mar
-04
Sep
-04
Mar
-05
Sep
-05
Mar
-06
Sep
-06
Mar
-07
Sep
-07
Mar
-08
Sep
-08
Mar
-09
Sep
-09
Mar
-10
Sep
-10
Mar
-11
Sep
-11
Mar
-12
Sep
-12
Mar
-13
Sep
-13
Mar
-14
Sep
-14
Mar
-15
Sep
-15
Mar
-16
Sep
-16
Mar
-17
Op
enin
gs, H
ires
(0
00
's)
Recession Openings Hires
GDP growth of 1.2% in Q1 2017
©2017 by Crain Communications Inc. All rights reserved.
Sources: Estimate: US Department of Commerce, May 26, 2017Recession Dates: National Bureau of Economic Research
-10%
-8%
-6%
-4%
-2%
0%
2%
4%
6%
2Q
08
3Q
08
4Q
08
1Q
09
2Q
09
3Q
09
4Q
09
1Q
10
2Q
10
3Q
10
4Q
10
1Q
11
2Q
11
3Q
11
4Q
11
1Q
12
2Q
12
3Q
12
4Q
12
1Q
13
2Q
13
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
US Real GDP Growth, Quarter-to-Quarter, Seasonally Adjusted
Recession GDP Growth
Expected to continue to muddle around 2%
©2017 by Crain Communications Inc. All rights reserved.
Sources: Estimate: US Department of Commerce, May 26, 2017, Projection: The Conference Board, May 10, 2017 Recession Dates: National Bureau of Economic Research
-10%
-8%
-6%
-4%
-2%
0%
2%
4%
6%
2Q
08
3Q
08
4Q
08
1Q
09
2Q
09
3Q
09
4Q
09
1Q
10
2Q
10
3Q
10
4Q
10
1Q
11
2Q
11
3Q
11
4Q
11
1Q
12
2Q
12
3Q
12
4Q
12
1Q
13
2Q
13
3Q
13
4Q
13
1Q
14
2Q
14
3Q
14
4Q
14
1Q
15
2Q
15
3Q
15
4Q
15
1Q
16
2Q
16
3Q
16
4Q
16
1Q
17
2Q
17
2H
17
20
18
US Real GDP Growth, Quarter-to-Quarter, Seasonally Adjusted
Recession GDP Growth Estimate GDP Growth Projection
Initial unemployment claims below 250,000
©2017 by Crain Communications Inc. All rights reserved.
Sources: US Department of Labor and National Bureau of Economic Research
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
Weekly Initial Unemployment Claims (Seasonally Adjusted, 4 week avg.)
Recession Unemployment Claims
S&P 500 at record levels
©2017 by Crain Communications Inc. All rights reserved.
Source: Yahoo Finance and National Bureau of Economic Research
0
500
1000
1500
2000
2500
5/31
/200
7
11/3
0/2
00
7
5/31
/200
8
11/3
0/2
00
8
5/31
/200
9
11/3
0/2
00
9
5/31
/201
0
11/3
0/2
01
0
5/31
/201
1
11/3
0/2
01
1
5/31
/201
2
11/3
0/2
01
2
5/31
/201
3
11/3
0/2
01
3
5/31
/201
4
11/3
0/2
01
4
5/31
/201
5
11/3
0/2
01
5
5/31
/201
6
11/3
0/2
01
6
5/31
/201
7
S&P 500 Closing Price
Recession Price
Agenda
If you are having trouble with the sound, you may dial into the call by dialing 1-650-479-3208 and using access code 664 525 236.
• Economic and Employment Trends
• M&A Database
• Legal Update
• Human Cloud
• A Tour of the Global Staffing Market
• IT Staffing Survey Results
• Q&A, etc.
©2017 by Crain Communications Inc. All rights reserved.
Mergers and acquisitions database
©2017 by Crain Communications Inc. All rights reserved.
Source: SIA Mergers and Acquisitions Database 2017
M&A database: dashboard
©2017 by Crain Communications Inc. All rights reserved.
Source: SIA Mergers and Acquisitions Database 2017
M&A database: dashboard
©2017 by Crain Communications Inc. All rights reserved.
Source: SIA Mergers and Acquisitions Database 2017
M&A database: dashboard
©2017 by Crain Communications Inc. All rights reserved.
Source: SIA Mergers and Acquisitions Database 2017
M&A database: dashboard
©2017 by Crain Communications Inc. All rights reserved.
Source: SIA Mergers and Acquisitions Database 2017
M&A database: sort & filter raw data
©2017 by Crain Communications Inc. All rights reserved.
Source: SIA Mergers and Acquisitions Database 2017
Agenda
If you are having trouble with the sound, you may dial into the call by dialing 1-650-479-3208 and using access code 664 525 236.
• Economic and Employment Trends
• M&A Database
• Legal Update
• Human Cloud
• A Tour of the Global Staffing Market
• IT Staffing Survey Results
• Q&A, etc.
©2017 by Crain Communications Inc. All rights reserved.
©2017 by Crain Communications Inc. All rights reserved.
The Compliance Landscape: US 2017
• Immigration: H-1B visa program
• Healthcare reform: AHCA
• FLSA Overtime Rule
• Misclassification
• Background Checks
• Paid Leave
©2017 by Crain Communications Inc. All rights reserved.
• US Citizenship and Immigration Services (USCIS) reached the FY 2018 cap 85,000 cap within four days in April 2017
• USCIS announced entry-level computer programming will no longer qualify as a “specialty occupation”
• Executive Order “Buy American and Hire American” April 18, 2017 ordered a multi-agency review of the program with proposals for reform
• Four bipartisan reform bills: proposing an increase to the salary threshold; giving preference to US-educated foreign students, and start-ups etc.
Immigration
©2017 by Crain Communications Inc. All rights reserved.
Healthcare Reform
• House passed H.R. 1628 American Health Care Act (AHCA) to repeal core components of the Patient Protection and Affordable Care Act (ACA) May 4, 2017 under budget reconciliation process
• To qualify for this expedited process, which removes the opportunity of a filibuster, any legislation re. tax, spending and public debt must slice $2 billion off the federal deficit
• Congressional Budget Office estimated it would reduce the deficit by $119bn
• Bill now moves to the Senate but likely to be amended or replaced
©2017 by Crain Communications Inc. All rights reserved.
• FLSA Overtime Rule Changes due Dec. 1, 2016 blocked by injunction Nov. 22, 2016
• Increase in minimum salary level for “white collar” exemptions: From $23,660 to $47,476 i.e. $913pw
• 5th Circuit Court of Appeals to hear appeal brought by Department of Labor under previous administration
• Department of Justice requested an extension of time to file a brief until June 30, 2017
• New York State and California have set their own increases
FLSA Overtime Rule Changes
©2017 by Crain Communications Inc. All rights reserved.
• Gig economy cases provide no certainty on employment status
• Florida state legislation seeks to provide certainty
• Position of Wage & Hour Division Administrator still vacant; Administrator’s Interpretation 2015-1 still stands – “most workers are employees”
• Department of Labor (DOL), IRS and 37 state authorities pledged to combat misclassification
Misclassification
©2017 by Crain Communications Inc. All rights reserved.
• 150 cities and 27 states have adopted “ban the box” laws
• California requires employers to justify a policy that creates an adverse impact on a protected class (race, gender etc.)
• New York City forbids salary history inquiry of any applicant – to close the “gender pay gap”
Background checks
©2017 by Crain Communications Inc. All rights reserved.
• President Trump’s first budget for 2018 proposes six weeks of paid family leave for new parents
• 39 laws on paid sick leave across U.S.
• Paid sick leave for federal contractors –effective Nov. 29, 2016 – up to 56 hours, incl. family care
Paid leave
©2017 by Crain Communications Inc. All rights reserved.
Links to Reports• The Compliance Landscape: U.S. 2017:
http://www2.staffingindustry.com/Research/Research-Topics-Reports/Americas/The-Compliance-Landscape-U.S.-2017
• North America Legal Update Q1 2017: http://www2.staffingindustry.com/Research/Research-Topics-Reports/Americas/North-America-Legal-Update-Q1-2017
• 2017 Legal Calendar: North America 2017: http://www2.staffingindustry.com/site/Research/Research-Topics-Reports/North-America/2017-Legal-Calendar-North-America
• Paid Sick Leave Laws 2016:http://www2.staffingindustry.com/site/Research/Research-Topics-Reports/North-America/Paid-Sick-Leave-Laws-2016
©2017 by Crain Communications Inc. All rights reserved.
Agenda
If you are having trouble with the sound, you may dial into the call by dialing 1-650-479-3208 and using access code 664 525 236.
• Economic and Employment Trends
• M&A Database
• Legal Update
• Human Cloud
• A Tour of the Global Staffing Market
• IT Staffing Survey Results
• Q&A, etc.
©2017 by Crain Communications Inc. All rights reserved.
©2017 by Crain Communications Inc. All rights reserved.
Human cloud companies
Companies that connect workers to work through an online or digital platform, and facilitate the transaction from sourcing through payment.
©2017 by Crain Communications Inc. All rights reserved.
Workforce solutions ecosystem
©2017 by Crain Communications Inc. All rights reserved.
Source: Workforce Solutions Ecosystem: 2016 Update, SIA
Workforce solutions ecosystem
Three business models inside the human cloud:
• Online Staffing: (Upwork, Shiftgig, Freelancer, Catalant)
• Crowdsourcing: (Mechanical Turk, microtasks, contests)
• Online Work Services: (Uber, Instacart, Soothe)
©2017 by Crain Communications Inc. All rights reserved.
Source: Workforce Solutions Ecosystem: 2016 Update, SIA
Human cloud summary stats
2016 Total Human Cloud Revenue: $47 billion - $51 billion
2016 B2C Revenue: $42 billion - $45 billion~2x growth y/y
2016 B2B Revenue: $5.7 billion – $6.5 billion~20% growth y/y
©2017 by Crain Communications Inc. All rights reserved.
Source: The Gig Economy and Human Cloud Landscape: 2017 Update, SIA
Human cloud summary stats
2016 Total Human Cloud Revenue: $47 billion - $51 billion
2016 B2C Revenue: $42 billion - $45 billion~2x growth y/y
2016 B2B Revenue: $5.7 billion – $6.5 billion~20% growth y/y
Relevant to staffing
©2017 by Crain Communications Inc. All rights reserved.
Source: The Gig Economy and Human Cloud Landscape: 2017 Update, SIA
©2017 by Crain Communications Inc. All rights reserved.
2016 market size and features of the global gig economy
Independent contractors/self-employed individuals are the largest component of the gig economy, generating $2,039 billion in revenue*
Temporary workers sourced directly (e.g. seasonal workers): $611 billion*
Workers under a Statement-of-work arrangement: $458 billion*
Temporary agency workers: $382 billion
Uber: $20 billion Didi Chuxing: $14.2 billion
All B2B-focused human cloud companies: $5.7 billion
Lyft: $2.3 billion
Human cloud: $47 billion**
Market size and features of the Gig Economy
Market size and features of the Human Cloud
Market size and features of B2B Human Cloud Companies
11
1
2
3
4
350+ identified B2B-focused human cloud platforms (other than those to the right): $1.4 billion
Zhubajie (Witmart):$1.3 billion
Upwork: $1.2 billion
MBO Partners$404 million
Axiom: $250 million
GLG: $320 million
12
5 6
78
910
13
14
15
16 17
18
Sources: 1) The Global Gig Economy: Market Estimates and Features, SIA, 2) Global Staffing Industry Market Estimates and Forecast, SIA3) The Gig Economy and Human Cloud Landscape, SIA *2015 revenue used as proxy for 2016, **Uses minimum of estimated range
©2017 by Crain Communications Inc. All rights reserved.
IT, marketing/creative highly represented in B2B human cloud spend
Occupational skill segment
Percent of human cloud revenue
Percent of temporary staffing revenue Delta
Industrial 1% 36% -35%
Office/clerical 6% 21% -16%
IT 44% 15% 29%
Healthcare 2% 7% -5%
Engineering 2% 7% -5%
Finance/accounting 7% 5% 1%
Legal 11% 1% 11%
Clinical/scientific 1% 1% 0%
Marketing/creative 19% 1% 18%
Education 1% 1% 0%
Other (sales, consulting, etc.) 10% 3% 7%
Sources: Global Staffing Industry Market Estimates and Forecast: May 2017 Update, SIAThe Gig Economy and Human Cloud Landscape: 2017 Update, SIA
©2017 by Crain Communications Inc. All rights reserved.
B2B human cloud revenue by region (based on where client is located), 2016
54%
26%
11%
9%
United States Asia Pacific Europe Rest of the World
Source: The Gig Economy and Human Cloud Landscape: 2017 Update, SIA
©2017 by Crain Communications Inc. All rights reserved.
Who is buying what the human cloud is selling? Distribution of B2B human cloud revenue by client size, 2016
34%
31%
17%
5%
13%
$0-$10 million $11-$50 million $51-$100 million
$101-$500 million $500 million +
Source: The Gig Economy and Human Cloud Landscape: 2017 Update, SIA
©2017 by Crain Communications Inc. All rights reserved.
Percent of 2016 B2B human cloud revenue generated from remote versus onsite work
20%
80%
Onsite Remote
Source: The Gig Economy and Human Cloud Landscape: 2017 Update, SIA
©2017 by Crain Communications Inc. All rights reserved.
Company Year founded HQ (country)
2016 gross revenue ($millions)
Staffing company affiliation
Adia 2017 Switzerland <5 AdeccoApli 2016 Mexico <5Cerebro 2015 USA <5Coople1 2010 Switzerland 35Erandoo 2017 USA <5 IntegrityGoWorkaBit 2013 Estonia <5Helpster 2016 Indonesia <5Inploi.me 2015 UK <5Jitjatjo 2015 USA <5Jobble 2014 USA <5JobStack 2017 USA <5 TrueBlueMister Temp 2015 France <15 ZephyrNvoi 2012 Australia <5Pared 2015 USA <5Shiftgig 2012 USA 27Werkly 2013 USA <1Wonolo 2013 USA <15Work Llama 2016 USA <5Sidekicker 2012 Australia <5
Source: The Gig Economy and Human Cloud Landscape: 2017 Update, SIA
©2017 by Crain Communications Inc. All rights reserved.
©2017 by Crain Communications Inc. All rights reserved.
©2017 by Crain Communications Inc. All rights reserved.
©2017 by Crain Communications Inc. All rights reserved.
©2017 by Crain Communications Inc. All rights reserved.
©2017 by Crain Communications Inc. All rights reserved.
©2017 by Crain Communications Inc. All rights reserved.
Agenda
If you are having trouble with the sound, you may dial into the call by dialing 1-650-479-3208 and using access code 664 525 236.
• Economic and Employment Trends
• M&A Database
• Legal Update
• Human Cloud
• A Tour of the Global Staffing Market
• IT Staffing Survey Results
• Q&A, etc.
©2017 by Crain Communications Inc. All rights reserved.
©2017 by Crain Communications Inc. All rights reserved.
©2017 by Crain Communications Inc. All rights reserved.
Ten countries make up 83% of market
US32%
Japan13%
UK10%
Germany7%
France6%
Netherlands, 5%
Australia, 4%
China, 2%
Italy, 2%
Switzerland, 2%
Other17%
2016 Global Staffing Revenue: USD 428 Billion
Source: Global Staffing Industry Market Estimates and Forecast: May 2017 Update, SIA
©2017 by Crain Communications Inc. All rights reserved.
Wide variety in GDP penetration
2016 Staffing Revenue 2016 Rank
CountryUSD
(Billions)% of 2016
GDPStaffing Revenue
GDP
United States 136.8 0.7% 1 1
Japan 56.7 1.1% 2 3
United Kingdom 44.1 1.7% 3 5
Germany 27.7 0.8% 4 4
France 25.0 1.0% 5 6
Netherlands 19.9 2.6% 6 18
Australia 14.6 1.2% 7 13
China 10.1 0.1% 8 2
Italy 10.0 0.5% 9 8
Switzerland 8.1 1.2% 10 19
Global 427.6 0.6%
Source: Global Staffing Industry Market Estimates and Forecast: May 2017 Update, SIA
©2017 by Crain Communications Inc. All rights reserved.
Staffing revenue projections by country
Staffing RevenueY/Y Change
(National Currency)Real GDP Growth
2016 2017P 2018P 2016 2017P 2018P
United States 3% 3% 4% 1.6% 2.3% 2.5%
Japan 4% 5% 4% 1.0% 1.2% 0.6%
United Kingdom 4% 3% 1% 1.8% 2.0% 1.5%
Germany 6% 7% 7% 1.8% 1.6% 1.5%
France 7% 8% 7% 1.2% 1.4% 1.6%
Netherlands 9% 7% 6% 2.1% 2.1% 1.8%
Australia 3% 2% 2% 1.2% 1.6% 1.5%
China 18% 16% 16% 6.7% 6.6% 6.2%
Italy 9% 14% 15% 0.9% 0.8% 0.8%
Switzerland 1% 2% 4% 1.3% 1.4% 1.6%
Sources: 1) Global Staffing Industry Market Estimates and Forecast: May 2017 Update, SIA 2) World Economic Outlook: May 2017, International Monetary Fund
©2017 by Crain Communications Inc. All rights reserved.
Global staffing revenue projections
Staffing RevenueY/Y Change
(National Currency)Real GDP Growth
2016 2017P 2018P 2016 2017P 2018P
United States 3% 3% 4% 1.6% 2.3% 2.5%
Japan 4% 5% 4% 1.0% 1.2% 0.6%
United Kingdom 4% 3% 1% 1.8% 2.0% 1.5%
Germany 6% 7% 7% 1.8% 1.6% 1.5%
France 7% 8% 7% 1.2% 1.4% 1.6%
Netherlands 9% 7% 6% 2.1% 2.1% 1.8%
Australia 3% 2% 2% 1.2% 1.6% 1.5%
China 18% 16% 16% 6.7% 6.6% 6.2%
Italy 9% 14% 15% 0.9% 0.8% 0.8%
Switzerland 1% 2% 4% 1.3% 1.4% 1.6%
Global Staffing Revenue:2016: $428 billion (4% growth in US dollars, 5% in constant currency)2017P: $441 billion (3% growth in US dollars, 5% in constant currency)2018P: $464 billion (5% growth in constant currency)
Sources: 1) Global Staffing Industry Market Estimates and Forecast: May 2017 Update, SIA 2) World Economic Outlook: May 2017, International Monetary Fund
©2017 by Crain Communications Inc. All rights reserved.
Changes in rank from 2013 to 2016
2016 Rank Country2016 Staffing Revenue
($ Billions)2013 Rank
1 United States 136.8 1
2 Japan 56.7 2
3 United Kingdom 44.1 3
4 Germany 27.7 4
5 France 25.0 5
6 Netherlands 19.9 6
7 Australia 14.6 7
8 China 10.1 12
9 Italy 10.0 10
10 Switzerland 8.1 11
Source: Global Staffing Industry Market Estimates and Forecast: May 2017 Update, SIA
©2017 by Crain Communications Inc. All rights reserved.
Changes in rank from 2013 to 2016
2016 Rank Country2016 Staffing Revenue
($ Billions)2013 Rank
1 United States 136.8 1
2 Japan 56.7 2
3 United Kingdom 44.1 3
4 Germany 27.7 4
5 France 25.0 5
6 Netherlands 19.9 6
7 Australia 14.6 7
8 China 10.1 12
9 Italy 10.0 10
10 Switzerland 8.1 11
11 Canada 6.5 9
Source: Global Staffing Industry Market Estimates and Forecast: May 2017 Update, SIA
©2017 by Crain Communications Inc. All rights reserved.
Canadian temp staffing returns to growth
©2017 by Crain Communications Inc. All rights reserved.
Source: SIA Canadian Staffing Industry Outlook: 2017 Update
2016 2017P 2018P
Commercial 1% 4% 3%
Office/Clerical 0% 3% 2%
Industrial 2% 4% 3%
Professional -1% 4% 4%
IT Staffing 2% 4% 4%
Healthcare 1% 2% 2%
Finance/Acct. 1% 4% 3%
Engineering -7% 4% 4%
Other Prof. 1% 4% 3%
Total Temporary Staffing 0% 4% 3%
2016 2017P 2018P
Commercial 4.1 4.2 4.3
Office/Clerical 1.6 1.7 1.7
Industrial 2.4 2.5 2.6
Professional 4.1 4.2 4.4
IT Staffing 2.1 2.2 2.3
Healthcare 0.2 0.2 0.2
Finance/Acct. 0.4 0.4 0.5
Engineering 1.1 1.1 1.1
Other Prof. 0.3 0.4 0.4Total Temporary
Staffing 8.1 8.5 8.7
Temp. staffing revenue (CAD billion)Y/Y Change in temp. staffing revenue (CAD)
Oil price stabilization and strong US dollar driving growth
©2017 by Crain Communications Inc. All rights reserved.
Sources: US Energy Information Agency; OFX
CAD dollar to US dollar exchange rateOil price (WTI benchmark) in US dollars
0
50
100
2014 2015 2016 2017
0.50
0.60
0.70
0.80
0.90
1.00
2014 2015 2016 2017
Immigration also driving growth in Canada
©2017 by Crain Communications Inc. All rights reserved.
Sources: Statistics Canada; US Census Bureau; US Dept. of Homeland Security
Annual number of immigrants as percentage of population, 2012-2016
Population growth, 2012-2016(annual average)
1.1%
0.8%
Canada US
0.8%
0.3%
Canada US
Agenda
If you are having trouble with the sound, you may dial into the call by dialing 1-650-479-3208 and using access code 664 525 236.
• Economic and Employment Trends
• M&A Database
• Legal Update
• Human Cloud
• A Tour of the Global Staffing Market
• IT Staffing Survey Results
• Q&A, etc.
©2017 by Crain Communications Inc. All rights reserved.
IT Staffing Benchmarking Survey
• 22 participating firms
• Over $5.2 billion in temporary IT staffing revenue (US only)
• Participants received full report of results
– Volume and rate trends by occupation
– Revenue breakout by client industry
– Statement-of-work (SOW) engagements
– Implied contract duration by occupation
– Bill-pay rates by firm size
• Summary report available now to corporate members
• For 2018 invitation: [email protected]
©2017 by Crain Communications Inc. All rights reserved.
©2017 by Crain Communications Inc. All rights reserved.
IT temp. staffing revenue growth in 2016
4.3%
-2.6%
8.2%
17.1%
Aggregate 25th Quartile Median 75th Quartile
Source: IT Staffing Benchmarking Survey Results: 2017 Report, SIA
©2017 by Crain Communications Inc. All rights reserved.
Revenue by occupation – 2016
28%
13%
11%9%
9%
6%
4%
4%
3%
3%
1% 1%1%
7%
Software developer/engineer/DevOps
Project manager
Business/systems analyst
IT infrastructure
Help desk/PC support
Software QA/testing
Data architect/data scientist/big data/BI
Cyber/data security
Programmer/coder
Enterprise implementation/maintenance
Web developer/digital/UI/UX
Technical writer
Cloud architect
Other IT staffing
Source: IT Staffing Benchmarking Survey Results: 2017 Report, SIA
©2017 by Crain Communications Inc. All rights reserved.
2016/2015 revenue growth by occupation
22%
15%
11%
9%
9%
7%
6%
5%
4%
2%
2%
0%
-4%
-3%
4.3%
Web developer/digital/UI/UX
Business/systems analyst
Cyber/data security
Programmer/coder
Cloud architect
Project manager
Help desk/PC support
Technical writer
Enterprise implementation/maintenance
Software developer/engineer/DevOps
Data architect/data scientist/big data/BI
IT infrastructure
Software QA/testing
Other IT staffing
Total IT staffing
Source: IT Staffing Benchmarking Survey Results: 2017 Report, SIA
©2017 by Crain Communications Inc. All rights reserved.
A majority of survey revenue did not pass through a VMS
Direct, no VMS, 57%
Direct order, with VMS,
22%
Order through VMS, 21%
Source: IT Staffing Benchmarking Survey Results: 2017 Report, SIA
©2017 by Crain Communications Inc. All rights reserved.
Revenue by client industry – 2016
Tech/Telecom, 24%
Banking/Fin Serv/Insurance, 23%
Healthcare, 13%
7%
6%
5%
5%
4%
3%
2%1%
7%Tech/Telecom
Banking/Fin Serv/Insurance
Healthcare
Manufacturing
Pharma/Biotech/Med Device
Retail
Government
Energy & Mining
Transport/Warehousing
Utilities
Restaurant/Hospitality
Other
Source: IT Staffing Benchmarking Survey Results: 2017 Report, SIA
©2017 by Crain Communications Inc. All rights reserved.
Which skills are IT staffing firms having the most difficulty recruiting? (5 = most difficult)
4.3
4.3
3.9
3.3
2.9
2.8
2.6
2.5
2.5
2.3
2.3
2.1
1.7
1.6
Cyber/data security
Cloud architect
Data architect/data scientist/big data/BI
Software developer/engineer/DevOps
Enterprise implementation/maintenance
Web developer/digital/UI/UX
Other IT staffing
Programmer/coder
Project manager
Business/systems analyst
Software QA/testing
IT infrastructure
Technical writer
Help desk/PC support
Source: IT Staffing Benchmarking Survey Results: 2017 Report, SIA
Agenda
If you are having trouble with the sound, you may dial into the call by dialing 1-650-479-3208 and using access code 664 525 236.
• Economic and Employment Trends
• M&A Database
• Legal Update
• Human Cloud
• A Tour of the Global Staffing Market
• IT Staffing Survey Results
• Q&A, etc.
©2017 by Crain Communications Inc. All rights reserved.
Staffing Industry Analysts Webinar:Tuesday, August 8th, 10AM Pacific/1PM Eastern
Want to see your name in print? Staffing Stream is looking for thought leaders. (Original content only.)
Email [email protected]
Look for invitations in your email!
Reminders…
©2017 by Crain Communications Inc. All rights reserved.
Two ways to submit questions:1) To submit a question now, just click on the Question Mark icon (?) on the floating toolbar.2) To submit one later, email [email protected].
Questions for the analysts?
©2017 by Crain Communications Inc. All rights reserved.
Tony GregoireDirector of Research,The Americas
Timothy LandhuisResearch Manager
Brian WallinsSr. Research Analyst
David FrancisSr. Research Analyst
Fiona CoombeDirector, Legal & Regulatory Research
Thank you to our sponsor…
©2017 by Crain Communications Inc. All rights reserved.
Links to research discussed in today’s webinar:
June US Jobs Reporthttp://www2.staffingindustry.com/site/Research/Research-Topics-Reports/Americas/June-US-Jobs-Report2
M&A Databasehttp://www2.staffingindustry.com/Research/Research-Topics-Reports/Americas/Mergers-and-Acquisitions-Database-2017
The Compliance Landscape US 2017http://www2.staffingindustry.com/Research/Research-Topics-Reports/Americas/The-Compliance-Landscape-U.S.-2017
The Gig Economy and Human Cloud Landscape: 2017 Updatehttp://www2.staffingindustry.com/Research/Research-Topics-Reports/Americas/The-Gig-Economy-and-Human-Cloud-Landscape-2017-Update
Global Staffing Industry Market Estimates and Forecast: May 2017 Updatehttp://www2.staffingindustry.com/Research/Research-Topics-Reports/Americas/Global-Staffing-Forecast-May-2017
Canadian Staffing Industry Outlook: 2017 Updatehttp://www2.staffingindustry.com/Research/Research-Topics-Reports/Americas/Canadian-Staffing-Industry-Outlook-2017-Update
IT Staffing Benchmarking Survey Results: 2017 Summary Reporthttp://www2.staffingindustry.com/site/Research/Research-Topics-Reports/Americas/IT-Staffing-Survey-2017
©2017 by Crain Communications Inc. All rights reserved.