NAICS 5613

Employment Services

Employment services industry overview: staffing agencies, temporary employment, job placement, and PEO services facilitating labor market connections.

Published by VantaInsights Research·Methodology·Data Sources· AI-drafted
Built on data from Census Bureau CBP Bureau of Labor Statistics Federal Reserve FRED SEC EDGAR

Industry at a Glance

Sector-wide aggregates across all businesses classified under NAICS 5613 (2017 classification frame). For specific sub-industries within this sector, see the individual reports below.

Employment
7.8M
US Census CBP · 2023 · NAICS 2017
Establishments
56K
US Census CBP · 2023 · NAICS 2017
Annual Payroll
$471.8B
US Census CBP · 2023 · NAICS 2017
Avg Annual Wage
$60,555
Derived from US Census CBP · 2023 · NAICS 2017
Market Size
$557.9B
US Census Economic Census · 2022 · NAICS 2017

Industry Overview

Employment services (NAICS 5613) encompasses establishments primarily engaged in providing specialized employment and staffing services to businesses and job seekers. This industry includes temporary help services, professional employer organizations (PEOs), employee leasing firms, and job placement agencies that match workers with employers across various skill levels and industries. Employment services serve a critical economic function by facilitating labor market efficiency, reducing hiring costs and time for employers, and expanding job opportunities for workers. The industry has evolved significantly with technological advancement, offering digital platforms for job matching, skills assessments, and remote work coordination alongside traditional staffing models.

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Industry Trends

01

Digital transformation and technology-enabled recruitment platforms are reshaping how employment services match candidates with positions, enabling faster screening, skills assessment, and job matching at scale.

02

The rise of hybrid and remote work models has expanded the geographic reach of employment services, allowing staffing firms to serve clients and place workers across broader regional and national markets.

03

Growing demand for specialized and skilled workers in technology, healthcare, and professional services is driving premium pricing and specialization among employment service providers.

04

Regulatory scrutiny around worker classification, benefits, and labor practices is increasing compliance requirements for staffing firms, particularly around gig economy and contractor arrangements.

05

Strategic consolidation continues among mid-market staffing firms as larger companies acquire specialized boutique agencies to expand service offerings and geographic coverage.

Available Reports

1 industry report available for purchase under Employment Services.

Temporary Help Services
NAICS 56132
→

Specialty Reports Available on Request

4 specialty industriesavailable on request
▾
Employment Placement Agencies
561311View →
Executive Search Services
561312View →
Temporary Help Services
561320View →
Professional Employer Organizations
561330View →

Industries

Browse deeper into the NAICS hierarchy.

561310 reports

Employment Placement Agencies & Executive Search Services

561321 report

Temporary Help Services

561330 reports

Professional Employer Organizations

Frequently Asked Questions

What is NAICS 5613? ▾
NAICS 5613 is the classification for Employment Services, which includes establishments engaged in supplying workers to other organizations on a temporary or permanent basis, as well as providing job placement services and professional employer organization functions. This includes temporary help services agencies, permanent placement agencies, and professional employer organizations that provide HR and payroll services including benefits administration, compliance management, and employee record maintenance. The industry acts as an intermediary between job seekers and employers, facilitating matches based on skills, experience, and organizational needs.
What are the main types of employment service providers? ▾
The primary segments include temporary staffing agencies that supply short-term workers for specific assignments, permanent placement firms that conduct executive search and professional recruitment, and professional employer organizations (PEOs) that assume HR and payroll responsibilities for client companies. Some firms operate in multiple segments, while others specialize in particular industries like healthcare, technology, or skilled trades. Many larger firms have developed specialized divisions focused on niche markets or worker categories.
How has technology impacted employment services? ▾
Technology has fundamentally transformed the industry through online job platforms, applicant tracking systems, technology-enabled candidate screening, and virtual interview capabilities. These capabilities have reduced time-to-hire, expanded access to broader candidate pools, and improved matching accuracy. However, they have also intensified competition, compressed pricing for commodity placements, and created pressure on traditional staffing models, requiring firms to differentiate through specialized services, expertise, and relationship-based value.
What regulatory challenges do employment services face? ▾
Employment services providers face complex and evolving regulations around worker classification, prevailing wage requirements, benefits obligations, and employment law compliance. Regulatory agencies scrutinize worker classification distinctions between temporary staff, contractors, and employees. Staffing firms must navigate varying state labor laws, equal employment opportunity requirements, and increasingly, wage and hour regulations affecting both their operations and their client relationships.
What is a Professional Employer Organization (PEO)? ▾
A PEO is an employment services firm that enters into an agreement with a client company to become the employer of record for that company's employees, handling payroll, benefits administration, tax compliance, and HR services. This arrangement allows small to mid-size companies to access enterprise-level HR services and benefits packages while the PEO assumes significant employment-related liability and administrative burden. PEOs represent a significant revenue segment within NAICS 5613.

Related Industries

Business Support Services 5614Travel Arrangement & Reservation Services 5615Investigation & Security Services 5616Elementary & Secondary Schools 6111Insurance Carriers 5241

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