The recruitment industry is often subject to expansions and contractions in different regions due to a variety of different economic and social factors. For UK-based firms seeking growth and new opportunities, expanding operations to the United States could be a great strategic move.
The American job market is vast, diverse and has been steadily expanding over the past few years. This presents ambitious recruitment firms with a great opportunity, and there is a growing number of UK recruitment agencies wanting to get in on the action.
In this article, we’ll offer up some food-for-thought reasons UK recruitment agencies should consider making the leap across the pond.
1. US recruitment industry growth
The US recruitment industry has always experienced fluctuations, with growth going up and down in response to economic cycles. However, the sheer size of the market continues to present it as a Top Global Market and a compelling opportunity for UK recruiters and regardless of these minor fluctuations it's steadily grown by 2.5% Compound Annual Growth Rate (CAGR) over the last decade.
With an SIA projected 1% growth in 2025, bringing the market size to $188.7 billion, the scale of the US recruitment industry offers immense potential. These ups and downs are part of the landscape, but the vast size and diversity of the US market provide a consistent opportunity for UK firms to tap into an expanding recruitment environment and secure a significant market share.
2. An expansive talent pool - and higher margins
The United States boasts a vast and diverse talent pool, offering recruitment firms access to a broad spectrum of skills and expertise. With a population of over 347 million people, of which around 215 million are in the workforce, the US job market is incredibly dynamic, encompassing various industries and sectors. Expanding to the US allows UK recruitment firms to tap into a rich source of talent, fostering diversity and specialisation within their candidate portfolios.
Higher salaries in the US, particularly for highly skilled workers, translate into more substantial placement fees and commissions for recruiters, amplifying their income potential. Recruiter margins in the US are also typically higher for contract placements compared to permanent staffing.
3. A wealth of sector opportunities
The U.S. economy is one of the largest and most robust in the world. As the country continues to navigate global economic challenges, various industries are experiencing a resurgence in demand for skilled professionals, from technology and healthcare to finance, renewables and advanced manufacturing.
The SIA forecast highlights promising growth across various sectors: IT staffing anticipates a remarkable 5% expansion, and healthcare staffing, despite a decline after record growth in the COVID era, remains a substantial market due to an aging population and technological advances. Indeed, with the IT sector valued at $43.2 billion, finance and accounting at $9.1 billion and renewable energy job creation projected to grow by 60%, the opportunities are there for UK recruitment firms looking to strategically boost their revenue streams.
4. It’s boom time in the temp & contingent worker market
The booming US temporary staffing market is projected to reach $188 billion in 2025. According to the SIA forecast, the placement and search segment alone contributes a significant $21.7 billion to the overall US staffing revenue.
Contingent workers, those in temporary, freelance, or contract roles, constitute about 50% of the average US company's workforce. This figure is expected to rise to 50% by 2050. Additionally, 65% of global companies plan to increase their use of contingent workers in the next two years.
With such growth anticipated, savvy UK firms can leverage their expertise and capitalise on the rising demand for flexible workforce solutions in the US, tapping into a multi-billion-dollar industry and fostering transatlantic business success.
5. A technological innovation hub
The US is a global leader in technological innovation, with renowned hubs such as Silicon Valley driving advancements across industries. Expanding to the United States enables UK recruitment firms to immerse themselves in a cutting-edge environment, attracting clients and candidates at the forefront of technological innovation. This move not only positions recruitment firms as industry leaders but also exposes them to emerging trends that can enhance their service offerings - globally.
6. Don’t put all your eggs in one basket
Faced with economic and political uncertainty, wise UK recruitment firms are strategically venturing into the US recruitment market to hedge instability risks. Operating in both the UK and the US provides a crucial backup revenue stream, offering resilience during hiring cuts or economic downturns in either country. The diversified US market, consisting of 50 states with distinct economies and sector demands, presents a unique advantage.
A US recruitment division not only cushions against slower economic periods but also taps into the stability of the US dollar and the vast domestic market. The ability to navigate various states allows recruiters to adapt to localised economic conditions. In times of turbulence in one state, the flexibility to recruit talent in another with booming growth or unique niche sectors ensures a more resilient recruitment business.
7. The unique appeal of US-UK cooperation
Expanding operations to the United States opens doors to a broader global network. The interconnected nature of the modern business world means that a presence in the US can facilitate connections with companies, candidates, and partners from around the globe. This expanded network not only enriches a recruitment firm's portfolio but also positions them as a global player, attracting clients seeking international talent solutions.
8. Integrated Employer of Record, Funding and Back-Office Solution
Available from 3R in partnertship with leading US Employer of Record (EoR) companies, a total US solution, integrating your Employer of Record with in-country US funding - built for recruiters ready to scale without limits.
Purpose built US workforce management (onboarding, contracts, timesheets and payroll ) and funding platforms (EoR invoice funding, BDP insurance, margin payments and reporting) seamlesly integrated to drive Recruiters’ US Contractor operations forward.
Minimise the risks of expansion, complexities of placing candidates in multiple states and administration of paying contractors on time. With fully outsourced expertise and support, you can now test the US waters without setting up a local US entity or increasing your headcount immediately.
In summary
It’s clear that UK recruiters have an clear opportunity to expand into the US market, leveraging the momentum and sheer scale of a major global staffing market. The United States offers a wide range of sectors including IT, engineering and life sciences, presenting a wealth of opportunities for UK recruiters to diversify their portfolio leading to long-term success and strategic growth.
Last updated: 22/4/2025