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Employment Agencies Report 11% Local Revenue Jump

Last year was a record one for U.S. employment agencies with revenue soaring to $212 billion, according to a report from Staffing Industry Analysts (SIA), with California emerging as the top state by revenue.

That growth is showcased in Orange County, where staffing agencies boosted their revenue 11% to $597 million.

This year’s Business Journal Employment Agencies list includes 15 companies ranked by OC revenue; the notable increase occurred despite the drop of Volt Workforce Solutions from the list, following the company’s 2022 sale for about $130 million.

OC employment agencies had posted four consecutive years of declines prior to 2021, which brought a 1.7% increase in business over 2020 when companies suffered labor losses from the pandemic.

Staffing agencies said they placed 21,346 temporary workers at OC firms last year, up 4% from 2021 following a 1.3% decline the year prior, and a steep 20% drop seen in 2020.
The number of permanent workers surged 28% to 791, a rebound from the 21% and 27% losses seen in the prior two years.

The list includes companies with at least $12 million in OC billings. The 15 companies reported companywide revenue gains of 8.8% to $18.6 billion.

Thirteen of the companies on the list reported gains in their OC billings, one was flat and one company was a Business Journal estimate.

SIA predicts the U.S. industry will continue to grow in 2023, albeit at a slower clip.

Top Five

The five largest staffing firms in OC remain unchanged from 2021, with Atlanta-based Select Staffing retaining the No. 1 slot. Select Staffing, which operates locally out of Irvine, saw OC revenue increase 4.4% to $100.3 million.

The company on social media recently pointed to a strong jobs report in February, with the U.S. economy adding 311,000 jobs during the month, about a third more than was predicted from experts.

Some of the biggest gains came from sectors that have suffered deep shortages since the pandemic, such as the leisure and hospitality industry, which added 105,000 jobs during the month.

Orange-based Roth Staffing Cos. LP, the largest employment agency based in OC and the second largest on the list, reported an 8.9% revenue bump to $81.4 million. The private firm counts 152 employees in OC.

Tustin is home to the next two largest staffing companies in OC by revenue, with PriorityWorkforce Inc. reporting a 5% increase in revenue to $63 million; and PTS Advance with $59 million in local billings, according to a Business Journal estimate, the same as the year prior.

Rounding out the top five is Hanover, Md.-based Aerotek Inc., which saw local revenue climb 18% to $49 million.

Hot Sectors

The largest local revenue increase came from Irvine-based Pacific Companies Inc., up 50% to $34 million, moving it up two slots to tie with Santa Ana-based TeamQuest Staffing Services Inc.

Pacific Companies specializes in healthcare placements, a sector that continues to see major gains in Orange County with billions of dollars of new development underway across the county.

SIA notes the top temporary sectors in the staffing industry last year were the IT and technology sector; the finance and accounting sector; the life science sector; and the marketing and creative sector.

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Sonia Chung
Sonia Chung
Sonia Chung joined the Orange County Business Journal in 2021 as their Marketing Creative Director. In her role she creates all visual content as it relates to the marketing needs for the sales and events teams. Her responsibilities include the creation of marketing materials for six annual corporate events, weekly print advertisements, sales flyers in correspondence to the editorial calendar, social media graphics, PowerPoint presentation decks, e-blasts, and maintains the online presence for Orange County Business Journal’s corporate events.
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