If you’re a UK-based recruitment firm thinking of expanding to (or already dabbling in) the US recruitment market, you’ll know the country is full of potential due to its strong and growing recruitment industry. We’ve already detailed the reasons why now is a great time to consider branching out to the US, as well as the pitfalls to avoid when getting started.
The US is the largest recruitment market in the world, with 34% of global market share. But being a geographically huge and economically diverse country, not all states and sectors are equal when it comes to recruitment. In order to get a good foothold, it makes sense to target the high-value, high-demand industries and states strategically.
In this article, we'll guide you through the states and sectors that are worth focusing on, offering insights and our own tips to ensure you can stay competitive and relevant when offering your services in the US.
Top 10 states for recruitment in the US
For UK-based recruiters expanding into the US, success lies in grasping the different characteristics of each state. The lucrative US recruitment market offers abundant opportunities but comes with challenges, including understanding state-specific nuances in economy, industries, legislation, taxes, and culture.
Recognising the unique attributes of each state is crucial for tailoring recruitment strategies to meet specific needs and expectations. We won’t be focusing on all of them here, but we can give you a quick glimpse into the benefits and potential drawbacks of the top ten states.
1. California
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2. Texas
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3. New York
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4. Florida
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5. Illinois
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6. Pennsylvania
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7. Massachusetts
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8. Georgia
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9. New Jersey
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9. North Carolina
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Best industries for recruitment in the US
Aside from the high-value geographical states, recruiters should also sharpen their focus to make the most of the high-value industries and occupations in the US. Specialising in up-and-coming and well-established sectors will allow UK-based recruiters to tap into dynamic US markets with consistent demand to ensure their long-term growth and profitability. Here is a selection of eight sectors we predict will be big in 2024.
1. Computer science and IT
The continued digital transformation across industries increases demand for IT professionals. The evolution of technologies like cloud computing and cybersecurity, along with its continually evolving security challenges, ensures sustained demand for skilled individuals, making this sector high value for recruitment.
The size of the US tech recruitment sector is truly mind-blowing; it is almost the same value as the entire UK recruitment market. Following another year of strong growth, the US tech and IT sector experienced an average salary rise of 2.3% in 2022.
2. Energy and renewables
As the world focuses on sustainable practices, the energy and renewables sector sees substantial growth. The transition to clean energy requires diverse skill sets, making it a lucrative industry for recruiters to connect talent with evolving opportunities.
The US government has pledged to make the power sector carbon-free by 2035 and transform the country into a net-zero emissions economy by 2050. They have promised to create 10 million clean-energy jobs, so high-value opportunities for recruitment agencies in the sector are abundant.
3. Life sciences and biotechnology
Advancements in healthcare, pharmaceuticals, and biotechnology drive demand for specialised talent. The industry's innovation and response to global health challenges make it a high-value sector for recruitment, especially considering the need for diverse skill sets.
Although the labour market remains tight after layoffs in 2022, salaries are expected to rise by around 3% on average. Staffing Industry Analysts (SIA) have forecast a 5% expansion in the temporary staffing segment in 2024, elevating its worth to $3.5 billion.
4. Marketing, advertising, and creative
Evolving consumer behaviours and digital platforms necessitate skilled professionals in marketing and creative fields. The dynamic nature of these industries, coupled with the need for innovative approaches, positions them as high-value sectors in recruitment.
Digital advertising expenditures in the United States are projected to increase by 50% between 2023 and 2027, growing from $264 billion to $395 billion.
5. Artificial Intelligence and Machine Learning
AI and machine learning are integral to various sectors, creating a demand for skilled engineers and data scientists. AI and machine learning jobs have surged by nearly 75% in the last four years. The global machine learning market is projected to reach $209.91 billion by 2029, making skilled machine learning engineers eligible for extraordinary annual compensation ranging from $215,000 to $397,000.
6. Healthcare
The healthcare industry is consistently essential, with an ageing population and global health challenges. The demand for diverse healthcare professionals, from doctors to technicians, presents continuous opportunities for recruiters.
The healthcare sector is poised for rapid growth. Key roles like health services managers, nurse practitioners, and physician assistants are anticipated to see substantial job creation.
7. Finance and fintech
Finance, coupled with the rise of fintech, demands professionals with expertise in digital finance, blockchain, and analytics. The financial sector's constant innovation and adaptation to technology trends make it a high-value industry for recruitment. The employment of financial analysts, especially within technology organisations, is expected to grow 8 percent in the coming decade.
8. Construction
Infrastructure development and urbanisation drive the demand for skilled workers in construction. The industry's cyclical nature and ongoing projects position it as a high-value sector for recruitment, requiring various roles from project managers to skilled labour. With a post-pandemic construction spending surge now in full swing, a demand for 546,000 additional construction workers is predicted in 2023 and beyond.
About Lead & Gain
Lead & Gain are a US Employer of Record, providing specialist services to compliantly onboard and pay all types of contractors across North America, including C2C/LLC, Independent Contractors, W-2, and T-4.
They help navigate the complexities of employment contracts, contractor compliance, payroll, timesheet and expense management, federal, state and local registrations and tax reporting, provision of worker benefits, worker insurances, and more.