Operating business30% entry signalMarket screen4 sourced figuresStructure decidesentry cost

Temporary Staffing Agency

SoftwareTypically runs on Workforce scheduling, route and work-order management, staffing front and back office. · no software market screened here yet — the industry page
Prepared 2026-09-09

The industry — Temporary help services

Base industry report for 561320 →
Establishments · CanadaA
1,497
with employees
Under 10 employeesA
30%
most common size: 20–49
Establishments · USA
39,366
Employment · USA
3,928,974
100 per establishment
Payroll · USA
$177.0B
$45k per employee

Of 1,497 Canadian establishments with employees, 30% have fewer than ten — an industry where large establishments carry real weight.

Entry signal — what decides who wins here

Structure decides
Structure decides One thing must be true Execution decides

The binding constraint is not executional. Being better than the incumbent does not, by itself, get you in — this one is cleared with capital, an asset, or a permission.

What you would have to beat

Raise or borrow the entry ticket, or buy an operator who has already paid it. The barrier is money rather than permission, so it yields to a balance sheet — and an acquisition is usually cheaper than a start.

How it was read
Binding constraintUNVERIFIEDentry cost — Capital — being better does not, by itself, clear it.
How fragmented the field isA30% of establishments have fewer than ten employees — Concentrated — a new entrant competes against establishments with real scale.
What it costs to be in the businessUNVERIFIEDlow capital — The structural profile of subsector 561, inherited by every industry beneath it.
How many new establishments are still tradingA
Administrative and Waste Services, US · opened 2020
79.4%
1 year
63.6%
3 years
51.5%
5 years
37%
10 years
opened 2015

Measured, not forecast: the share of US establishments opening in one year that were still active later. It counts good operators and bad ones together, which is exactly why it is the honest answer to “what are the odds”. It is for the whole sector rather than this market, and the ten-year figure comes from an older cohort because no younger one has reached ten years.

This is not a probability of success, and it is not a verdict on you. No survival probability is published per market, and inventing one would be worse than saying so. What the bar reads is how much of the outcome sits inside an operator's control: green means the hurdles are ones a better operator clears, red means the binding constraint is capital, an asset or a permission rather than execution. Someone arriving with an advantage this screen did not assume can win a market shown in red.

Companies named in this market · 2

The binding constraint — entry cost

The business funds payroll before the invoice clears, which makes it a working-capital business wearing a services costume — every new placement consumes cash and factoring takes the margin that would otherwise fund growth. Gross margins are thin, clients switch on price, and workers switch for a dollar an hour. Screened alongside the general employment-services record at 5613.

Market scalelocalunit: one branch and the workers who can reach the shifts

Workers must physically get to the shift, so supply is a commuting radius. The client list is local too. Sized by the labour pool inside one commute.

Canadian establishments with employeesA 1,497 (Statistics Canada, December 2023) — Ontario 710, Quebec 363, British Columbia 156, Alberta 148
Canadian establishments by sizeA only 270 employ one to four people, while 389 employ 100 or more and 27 employ 500 or more — the opposite shape to most local service industries (Statistics Canada, December 2023)
Canadian employment services, 2024A operating revenue $24.26B on expenses of $23.23B — a 4.3% operating profit margin, down from 5.1% in 2023, 5.9% in 2022 and 6.6% in 2021; salaries, wages, commissions and benefits were $12.47B (Statistics Canada, NAICS 5613)
Temporary staffing share of employment-services salesA 48.2% in 2024, against 42.7% for permanent placement and contract staffing (Statistics Canada, NAICS 5613)
Ontario licence to operateA compulsory since 1 July 2024: a $25,000 security as an irrevocable letter of credit or surety bond, an application fee of $1,500 from 1 January 2026 (was $750), and a prohibition on clients knowingly using an unlicensed agency
US establishments, NAICS 561320A 39,366 establishments, 3,928,974 employees, $177.0B annual payroll (US County Business Patterns, 2022)
National addressable figureUNVERIFIED Not stated — this market is a set of unconnected local ones
Temporary staffing sales per Canadian establishment~$7.8M of billingsB

48.2% of the $24,263.7M of 2024 employment-services operating revenue is about $11.7B of temporary staffing sales, divided across the 1,497 establishments Statistics Canada counts in 561320. The two series have different frames — the sales split covers all of NAICS 5613, including permanent placement — so treat this as the order of magnitude of a branch's billings, not its revenue. What the branch keeps is the gross margin: 16.7% at ManpowerGroup, and a 4.3% operating margin industry-wide.

I

Who you would be competing with

The operators already at scale here, and whoever is buying these businesses. In most of these industries the competition an entrant meets is local, so this is who sets the terms rather than a list of everyone in the trade.

Largest operator
ManpowerGroup (NYSE: MAN) — the largest disclosed operator, and the clearest read on what the spread between bill rate and pay rate is actually worth
Scale
FY2025 revenue $17,957.1M, up 0.6%, on gross profit of $2,997.6M — a 16.7% gross margin, down from 17.3%. Revenue has fallen from $19,827.5M in 2022 while the margin fell with it.
Concentration
Not published. Statistics Canada puts the whole employment-services industry at $24.26B of operating revenue in 2024, of which temporary staffing was 48.2% of sales.
Others in the field
Randstad, Adecco and Robert Half globally; Kelly Services, at $4,250.9M and a 20.1% gross margin, as the closest disclosed comparable; Agilus Work Solutions and the regional Canadian agencies; and the client's own recruiter, who costs the client nothing extra.
Lock-in mechanism
Not assessed — screened before diligence
Price movement
The spread is compressing at the top — ManpowerGroup 17.3% to 16.7% of revenue, Kelly 20.4% to 20.1% — and the Canadian industry's operating margin fell from 6.6% in 2021 to 5.9%, 5.1% and then 4.3% in 2024.
Is the buyer consolidating?
No — No consolidator was identified at this scale. Who buys a Canadian staffing branch, and at what multiple, was not researched for this record — and the entry barrier that does exist is regulatory rather than competitive: Ontario has required a licence and a $25,000 security since 1 July 2024, and its clients are prohibited from using an unlicensed agency.
F

Financials & market size — sourced

Figures that came from a filing, a results release or reputable reporting, each carrying its evidence tier.

ManpowerGroup revenue and gross margin, FY2025A $17,957.1M, up 0.6%; gross profit $2,997.6M — a 16.7% gross margin, down from 17.3%
Kelly Services revenue and gross margin, FY2025A $4,250.9M, down 1.9%; gross profit $853.0M — a 20.1% gross margin
Canadian employment services operating marginA 4.3% in 2024, from 5.1% in 2023, 5.9% in 2022 and 6.6% in 2021 (Statistics Canada, NAICS 5613)
Ontario security for a licenceA $25,000 as an irrevocable letter of credit or surety bond, plus a $1,500 application fee from 1 January 2026 (was $750)
$

Market size, derived

Built from the competitor set upward rather than quoted from a forecast. Published TAMs in these categories are frequently reverse-engineered from each other, so any published figure is checked against the vendor arithmetic rather than trusted on its own.

Revenue floor
$22.2B

Disclosed revenue from 2 of 5 named vendors. The market is at least this large.

Implied total — revenue ÷ share
—

No vendor has both a disclosed revenue and a published share.

Published forecast
—Floor only

Only a revenue floor is known — the true market is larger by whatever the undisclosed vendors earn.

Competitor set · 5 named · 2 disclose revenue

NameRevenueShareNote
ManpowerGroupNYSE: MANA $18.0B — FY2025, from its 10-K filed 23 February 2026
Kelly ServicesNASDAQ: KELYAA $4.3B — fiscal year ended 28 December 2025
Randstad, Adecco, Robert HalfC not disclosed — The rest of the global field, all present in Canada. Their filings were not opened for this record, so no revenue is stated.
Agilus Work Solutions and the regional Canadian agenciesC not disclosed — Privately held; no revenue published and not researched for this record. These are what an entrant actually meets on a local order.
The 1,497 Canadian branchesA not disclosed — Statistics Canada, December 2023 — 710 of them in Ontario, where a licence and a $25,000 security have been compulsory since 1 July 2024. Only 270 employ one to four people; 389 employ 100 or more.

Evidence

Evidence. ManpowerGroup's and Kelly Services' revenue and gross profit are read from the XBRL data of their most recent 10-K filings — ManpowerGroup for FY2025, filed 23 February 2026, and Kelly for the year ended 28 December 2025, filed 12 February 2026 [A]; the gross margins are arithmetic on those two figures, and they are the anchor on this record because gross margin is the staffing spread itself. The Canadian revenue, expense and operating-margin series is Statistics Canada table 21-10-0063 and the temporary-staffing share of sales is table 21-10-0177, both for NAICS 5613 [A]. The Ontario licence, the $25,000 security and the application fees are from the province's own licensing page for temporary help agencies and recruiters [A]. Counts are Statistics Canada (December 2023) and US County Business Patterns (2022) [A]. What this does not establish: no published series isolates temporary help services (561320) from the wider employment-services group in the revenue and margin tables, so the derived per-establishment figure spans a broader industry than this record. Nothing opened here measures the working-capital cycle the reason rests on — days to collect an invoice, the cost of factoring one — and no Canadian branch's accounts were seen. Licensing rules outside Ontario were not checked. The cut factor is analyst judgment.

#

Where the industry talks

The associations, forums and events where people in this trade actually talk shop — where to listen before entering, and where the first customers are found. Each link was opened on the date shown.

AssociationCanadaA
ACSESS (Association of Canadian Search, Employment & Staffing Services)
acsess.org · 400 members (2026-09)

Corporate members (400 firms, 1,500+ branch offices) per its What Is ACSESS page. Code of ethics, provincial chapters and the Canadian member of the World Employment Confederation.

Checked 2026-09-22
AssociationUSA
American Staffing Association (ASA)
americanstaffing.net

The US staffing-industry trade association: legal guidance, research and the ASA Staffing Index. No member count stated on its pages.

Checked 2026-09-22
EventUSA
Staffing World
americanstaffing.net

ASA's annual convention and expo (Staffing World 2026); the main trade show for staffing-firm owners and their software suppliers. No attendance figure on the page.

Checked 2026-09-22
PublicationInternationalC
Staffing Industry Analysts (SIA)
staffingindustry.com

Blocked automated access (Cloudflare). Search results show 2026 research and press releases; runs Executive Forum North America (next March 2027, Miami Beach).

Checked 2026-09-22
AssociationUSA
TechServe Alliance
techservealliance.org

Association for IT and engineering staffing firms; Executive Summit Nov 9-11, 2026, monthly IT employment index. No member count on its site.

Checked 2026-09-22
PublicationUSA
Staffing Hub
staffinghub.com

Staffing-industry news and benchmarking (2026 State of Staffing report, conference calendar).

Checked 2026-09-22
PodcastUSA
The Staffing Show
staffinghub.com

Staffing Hub's interview podcast with staffing-firm executives; episodes dated September 2026.

Checked 2026-09-22

Canadian HR Reporter (hrreporter.com) is live and has a recruitment-and-staffing section but is an HR publication rather than a staffing-operator venue. No active staffing-owner subreddit could be verified.

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Software serving this industry

Vertical software markets filed along the same branch of NAICS — who sells to these businesses, and who an entrant would have to displace.

No vertical software market has been recorded along this branch yet. The base industry report says what the subsector typically runs on.

Other records in this industry