Market Size for Temp agency in 2026 [Example]

The total addressable market (TAM) for temp agencies includes all businesses worldwide that engage temporary workers. There are approximately 5 million businesses in the United States alone, with a total global market for staffing and temp agencies estimated at around $100 billion annually. This market encompasses a wide range of industries, including healthcare, retail, and IT, where temp agencies provide staffing solutions to fill short-term and seasonal needs.

The staffing market is expected to continue growing as companies seek flexible solutions for a changing workforce and evolving employment patterns. Temp agencies cater not only to large corporations but also to small and medium businesses that require temporary talent to manage fluctuations in workload.

The serviceable addressable market (SAM) focuses on businesses that are realistically reachable by your temp agency services. Assuming you can effectively target and serve small to medium-sized enterprises, which are key users of temp staffing solutions, the SAM would account for about 20% of the TAM. This translates to approximately $20 billion in annual spend by around 1 million businesses worldwide that actively seek temp agency services.

By targeting specific niches such as healthcare, hospitality, and light industrials, you can cater to businesses that regularly require temporary staffing, thereby positioning your services for higher engagement. This approach narrows down your audience and aligns with your capabilities as a solopreneur, focusing on delivering specialized, high-quality services to these sectors.

The serviceable obtainable market (SOM) reflects the portion of the SAM that you can realistically capture in your first year of operation. Assuming a conservative approach due to limited resources and market presence, capturing about 0.01% of your SAM equates to targeting approximately 100 companies and generating around $200,000 in annual revenue.

For instance, if you provide temp services at an average spend of $2,000 per company, this modest revenue projection acknowledges the challenges of market entry for a solopreneur. With effective marketing strategies and focus on networking, you can build a solid base of loyal clients, allowing for gradual scaling and market penetration over subsequent years.