Want to thrive in 2023?

Here are 3 reasons why the US recruitment market should be part of your plans…

1) The size of the market

It’s huge! The US recruitment market is the largest in the world (by some distance too!) It has a 30% global market share, twice as large as the second biggest market, Japan, and over three times larger than the UK recruitment market.

The US market generated $186.3 billion in revenue in 2021 and is predicted to be worth $216.8 billion in 2023.

Many of the individual states that make up the US each have an economy that is competitive with most countries. For example, if the state of California was an independent nation, it would have the 5th largest global economy! Keep in mind this is only 1 state out of 50 that you have access to!

2) It’s A LOT less saturated than the UK

Even though the US is approximately 40 times bigger than the UK and has a population around 5 times the size, it may come as a surprise to you that there are more recruitment agencies active in the UK - quite a bit more!

In the UK, there are roughly 35 recruitment agencies per 100sq miles - in the US, this figure is 0.65 (and yes, that decimal point really is in the right place!)

3) The billing fees are much higher

Everything is bigger in the US, including the margins (or markups as they’re called in the UK). From our experience of working with recruiters, the average margin in the UK is 15-20%, with some going as low as 8% to secure deals.

In the US we have seen margins between 25-45%, with many going in at 35%.

So when you compare UK vs US recruiting, recruiters in the US are doing the same duties they would be doing in the saturated UK market but for double the margins.

Bonus point: You can serve the US market from your UK office

Just because you want to work in the US market doesn’t mean you have to work in the US. We’ve helped many recruiters handle their operations from the UK. It’s a great way to test out the market without committing the financial risk of a physical entity.

By partnering with PGC you would receive:

• Advice and guidance on how to expand your business into the US (we’re the longest-serving employer of record exclusive to the North American market - we know a thing or two)

• Your own dedicated, US-based, Business Manager, plus support team and full access to our internal expert compliance team to help you navigate the U.S. market

• Access to our custom-built worker compliance management platform that allows you to seamlessly manage your workers and North American compliance in one system

So in conclusion, by operating in the US market you can compete for a bigger slice of the pie with less competition!

Want to find out how you can get started? Chat to one of our US Expansion Consultants at the Recruitment Mentors’ live podcast event or schedule in some time with them below.

We’ve helped numerous UK recruitment agencies make their mark in the US.

Check out their stories below!