The United States staffing market is the world’s largest, generating $184 billion in revenue in 2024, but it is not immune to changes in the job market. In fact, a 2025 report from Staffing Industry Analysts (SIA) projected a 3 percent decline that year, with a rebound beginning in 2026. However, despite that, the market has a positive outlook and should see cumulative growth of 10 percent between 2025 and 2030.
A new SIA report from early 2026 now projects that the US staffing market will grow by 1 percent this year, reaching $180.2 billion by the end of 2026. It believes that the industry will continue to expand by around 2 percent in 2027. That being said, a significant amount of client demand has moved away from staffing and into scope-of-work (SOW) projects. These projects are not included in that projected revenue, but if they were, the amount of revenue could be even higher.
The report from the SIA specifically looks at 12 occupational segments, one of which includes the healthcare industry. This sector, along with industrial and IT, accounts for 72 percent of the US temporary staffing market, meaning that trends in these areas can help explain what’s happening in the staffing market as a whole.
Finally, looking into 2026, SIA believes that these industries are poised for growth after a three-year period of declines. Factors such as candidate shortages and the expanding value proposition for staffing firms may support that growth moving through this year and into 2027.
What’s Happening in the Healthcare Staffing Industry?
Following the COVID-19 pandemic, healthcare was in disarray. There were significant nursing shortages, and burnout was high among those still on the job. The healthcare staffing industry was in high demand to make up for those losses and the instability seen across healthcare sectors.
Today, healthcare staffing revenue has begun to stabilize, and SIA forecasts it will reach around $38.7 billion by the end of 2026, potentially reaching $39.6 billion by 2027. The exact level of recovery, though, depends on the segment. Different workforce strategies, ongoing physician shortages, and tighter health system budgets continue to influence how much the sectors can grow.
SIA’s report also indicates that weakness in nursing segments, including per diem and travel nursing, has persisted longer than expected. Pricing pressure is still ongoing, despite the fact that travel nursing is stabilizing. Strike staffing has also presented itself as a primary source of volatility in the market. It creates intermittent shortages that lead to varied levels of demand and can influence the performance of the market overall.
By comparison, the allied health segment has been more stable, and locum tenens positions have seen consistent growth. Overall, all these facts point to the market moving away from volatility and into a more stable environment. While healthcare staffing will still see growth, it will likely be gradual and uneven across the different segments.
Career Forecasting: Where Are Jobs Increasing Most?
SIA has projected revenue by segment in the healthcare industry for 2026 through 2027.
Segments projected to experience growth through 2026 include:
- Locum tenens: This is the strongest area of growth, and there is expected to be 5 percent growth through 2027. The primary driver is the physician shortage, which means there is a stronger demand from staffing providers. Some particularly high areas of demand include anesthesiology, emergency medicine, and psychiatry.
- Allied health: The allied health segment is expected to see growth in 2026 (1 percent) and 2027 (2 percent). The allied health segment is highly diversified and includes therapy and imaging roles, school-based staffing, ambulatory care, and other necessary roles. Strike staffing is having a stabilizing effect, as is the demand for elective medical procedures.
Other segments are staying the same and stabilizing or will decline through 2026. These segments include:
- Nursing segments: Revenue in nurse staffing, which includes per diem, international, and travel nursing, is expected to fall by 2 percent this year but to then make up 1 percent of that loss in 2027. This is because temporary staff is being cut and renewal contracts are being negotiated, which can lead to revenue reductions in some cases.
- International nursing: International nursing is expected to decline by a dramatic 8 percent in 2026, but is also subject to a potential 10 percent rebound in 2027. International nursing is significantly impacted by visa backlogs, which hinder nurses from working abroad.
- Travel nursing: Strike staffing has been an important part of revenue for the travel nursing jobs segment, as it has offset lower demand for travel nurses. Despite that, the segment is expected to stay flat or grow by 2027, reaching $14 billion in revenue in 2026 and working its way up to $14.1 billion by the end of 2027.
- Per diem nursing: Per diem nursing declined by around 15 percent in 2025, with the market sitting at approximately $4 billion. Per diem nursing is expected to decline further by 7 percent in 2026 and an additional 2 percent in 2027. Reduced demand is the primary driver, leading to reduced budgets and payments for independent contractors.
What Does This Mean for Healthcare Professionals?
For healthcare professionals, these statistics show that during and following the COVID-19 pandemic, there was high demand and high pay, but the market is now stabilizing. Hospitals and other healthcare facilities may be cutting costs, limiting some opportunities. Additionally, while demand is still there, these facilities have the ability to be more selective and controlled when hiring.
Still, there is growth in many sectors. The job market is strong overall, but nurses may face higher competition and potentially be pitched lower rates in temporary roles.
How Does SHC Support Healthcare Careers?
Supplemental Health Care (SHC) connects healthcare professionals with top healthcare jobs across the United States. We partner with hospitals, schools, home health agencies, and many other care settings, bringing these roles to our community of qualified professionals. Whether you are looking for a travel, local, per diem, or permanent role, we are here to help. Visit our job search board, apply now to work with our team, or get in touch with our team to learn more.
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