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Page 1: This Staffing Industry Report webinar is › content › download › ... · Sources: US Bureau of Labor Statistics and Staffing Industry Analysts 0 50 100 150 200 250 300 350 400

This Staffing Industry Report webinar is graciously sponsored by…

©2017 by Crain Communications Inc. All rights reserved.

Page 2: This Staffing Industry Report webinar is › content › download › ... · Sources: US Bureau of Labor Statistics and Staffing Industry Analysts 0 50 100 150 200 250 300 350 400

©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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Please note:This webinar is broadcast through your computer speakers via the audio broadcasting icon on your screen. You may adjust the sound volume by using the slide bar on the audio broadcasting icon.

If you continue to have trouble with the sound, you may dial into the call by dialing 1-650-479-3208 and using access code 664 525 236.

For other assistance, contact SIA customer service at 800-950-9496.

Within 48 hours after the webinar, the slides for this presentation, the replay and relevant links to research will be emailed to you. Corporate members may access the research via these links; non-member attendees interested in the research should contact [email protected] for assistance with getting membership.

Staffing Industry Report Webinar June 2017

©2017 by Crain Communications Inc. All rights reserved.

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• Listen through your computer by turning on your speakers after you log into the event. Sound will be coming through this icon:

• Do not close this audio broadcast box.

• To increase the volume of sound coming through your computer speakers adjust the sound bar on the audio Broadcast box shown above.

• If you continue to have trouble, please submit your need for assistance in the Q&A section.

Audio for this webinar

©2017 by Crain Communications Inc. All rights reserved.

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• Questions may be submitted at any time during the presentation. To submit a question:

• Click on the Question Mark icon (?) on the floating toolbar (as shown at the right).

• This will open the Q&A window on your system only.

• Type your question into the small dialog box and click the Send Button.

Q&A icon

Submitting questions

©2017 by Crain Communications Inc. All rights reserved.

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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.

Page 7: This Staffing Industry Report webinar is › content › download › ... · Sources: US Bureau of Labor Statistics and Staffing Industry Analysts 0 50 100 150 200 250 300 350 400

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

Page 8: This Staffing Industry Report webinar is › content › download › ... · Sources: US Bureau of Labor Statistics and Staffing Industry Analysts 0 50 100 150 200 250 300 350 400

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

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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

Page 10: This Staffing Industry Report webinar is › content › download › ... · Sources: US Bureau of Labor Statistics and Staffing Industry Analysts 0 50 100 150 200 250 300 350 400

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)

Page 11: This Staffing Industry Report webinar is › content › download › ... · Sources: US Bureau of Labor Statistics and Staffing Industry Analysts 0 50 100 150 200 250 300 350 400

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

Page 12: This Staffing Industry Report webinar is › content › download › ... · Sources: US Bureau of Labor Statistics and Staffing Industry Analysts 0 50 100 150 200 250 300 350 400

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

Page 13: This Staffing Industry Report webinar is › content › download › ... · Sources: US Bureau of Labor Statistics and Staffing Industry Analysts 0 50 100 150 200 250 300 350 400

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

Page 14: This Staffing Industry Report webinar is › content › download › ... · Sources: US Bureau of Labor Statistics and Staffing Industry Analysts 0 50 100 150 200 250 300 350 400

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

Page 15: This Staffing Industry Report webinar is › content › download › ... · Sources: US Bureau of Labor Statistics and Staffing Industry Analysts 0 50 100 150 200 250 300 350 400

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

Page 16: This Staffing Industry Report webinar is › content › download › ... · Sources: US Bureau of Labor Statistics and Staffing Industry Analysts 0 50 100 150 200 250 300 350 400

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

Page 17: This Staffing Industry Report webinar is › content › download › ... · Sources: US Bureau of Labor Statistics and Staffing Industry Analysts 0 50 100 150 200 250 300 350 400

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

Page 18: This Staffing Industry Report webinar is › content › download › ... · Sources: US Bureau of Labor Statistics and Staffing Industry Analysts 0 50 100 150 200 250 300 350 400

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.

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Mergers and acquisitions database

©2017 by Crain Communications Inc. All rights reserved.

Source: SIA Mergers and Acquisitions Database 2017

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M&A database: dashboard

©2017 by Crain Communications Inc. All rights reserved.

Source: SIA Mergers and Acquisitions Database 2017

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M&A database: dashboard

©2017 by Crain Communications Inc. All rights reserved.

Source: SIA Mergers and Acquisitions Database 2017

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M&A database: dashboard

©2017 by Crain Communications Inc. All rights reserved.

Source: SIA Mergers and Acquisitions Database 2017

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M&A database: dashboard

©2017 by Crain Communications Inc. All rights reserved.

Source: SIA Mergers and Acquisitions Database 2017

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M&A database: sort & filter raw data

©2017 by Crain Communications Inc. All rights reserved.

Source: SIA Mergers and Acquisitions Database 2017

Page 25: This Staffing Industry Report webinar is › content › download › ... · Sources: US Bureau of Labor Statistics and Staffing Industry Analysts 0 50 100 150 200 250 300 350 400

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.

Page 26: This Staffing Industry Report webinar is › content › download › ... · Sources: US Bureau of Labor Statistics and Staffing Industry Analysts 0 50 100 150 200 250 300 350 400

©2017 by Crain Communications Inc. All rights reserved.

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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.

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• 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.

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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.

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• 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.

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• 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.

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• 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.

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• 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.

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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.

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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.

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©2017 by Crain Communications Inc. All rights reserved.

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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.

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Workforce solutions ecosystem

©2017 by Crain Communications Inc. All rights reserved.

Source: Workforce Solutions Ecosystem: 2016 Update, SIA

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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

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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

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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

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©2017 by Crain Communications Inc. All rights reserved.

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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.

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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

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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

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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

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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

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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

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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.

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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

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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

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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

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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

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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

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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

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Canadian temp staffing returns to growth

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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)

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Oil price stabilization and strong US dollar driving growth

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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

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Immigration also driving growth in Canada

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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

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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.

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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]

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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

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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

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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

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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

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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

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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

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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.

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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…

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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?

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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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Thank you to our sponsor…

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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

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