NAICS 561311 Quarterly Industry Report
Employment Placement Agencies
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 561311Sector: Administrative and Support and Waste Management and Remediation Services (56)Updated: Q1 2026
About This Report
This industry profile for Employment Placement Agencies (NAICS 561311) draws on data from the U.S. Census Bureau[5], Bureau of Labor Statistics[7], and SBA size standards database[6]. Published by Fair Market Value and updated quarterly, it provides valuation professionals, business brokers, and staffing industry analysts with current market structure data. The editorial analysis reflects the independent assessment of FairMarketValue.com's research team, with all quantitative claims sourced to publicly verifiable databases.
Industry Snapshot
Key metrics for the employment placement agencies industry.
Share of Administrative and Support and Waste Management and Remediation Services
1.6%
By establishment count, 2022 Census[2]
NAICS Sector
56
Administrative and Support and Waste Management and Remediation Services
Industry Definition & Overview
Employment Placement Agencies (NAICS 561311) encompasses establishments primarily engaged in listing employment vacancies, referring job applicants to employers, and placing workers in permanent positions. These businesses match qualified candidates with available job openings across diverse sectors and skill levels. Unlike temporary staffing services, employment placement agencies focus on permanent placement relationships where job seekers transition directly to employer payroll.
The industry serves critical workforce matching functions in the U.S. economy. Most companies operate as small establishments with fewer than 10 employees and annual revenues below $1 million. Individual placement agencies generate revenue through placement fees charged to employers, typically calculated as a percentage of first-year salary or flat fees for successful placements. Specialization matters. Agencies may focus on particular occupations, industries, or workforce segments to build deep candidate networks. Fee structures vary widely; contingent placements typically charge 15 to 25 percent of first-year salary, while retained searches command higher percentages and upfront payments.
Key business activities include screening applicants, conducting interviews, verifying references, matching candidate qualifications with employer requirements, and supporting the hiring process per the U.S. Census Bureau[5]. Per the SBA Table of Size Standards[6], NAICS 561311 has a small business threshold of $34.0 million in average annual receipts, enabling firms below this size to qualify for federal contracting opportunities and SBA-backed financing programs.
What's Included in This Industry
- Permanent employee placement and recruitment services
- Job candidate screening, interviewing, and reference verification
- Employment vacancy listing and job matching services
- Applicant referral and placement support
- Occupational and industry-specialized placement services
- Candidate skill assessment and qualification matching
- Employer consultation on hiring requirements and job specifications
- Direct hire placement for temporary-to-permanent positions
- Placement follow-up and candidate retention support
- Background check coordination and compliance verification
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Administrative and Support and Waste Management and Remediation Services | 56 |
| Subsector | Administrative and Support Services | 561 |
| Industry Group | Employment Services | 5613 |
| NAICS Industry | Employment Placement Agencies and Executive Search Services | 56131 |
| National Industry | Employment Placement Agencies | 561311 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 561312 | Executive Search Services | Executive Search Services involve specialized recruitment for senior management and C-level positions, focusing on retained or exclusive searches for high-compensation roles compared to general permanent placements |
| 561320 | Temporary Help Services | Temporary Help Services supply temporary workers to client businesses for limited periods, with workers remaining employees of the staffing agency rather than transferring to permanent employer status |
| 561330 | Professional Employer Organizations | Professional Employer Organizations provide HR services including payroll, benefits administration, and employee management beyond basic placement functions and recruitment activities |
| 561410 | Document Preparation Services | Document Preparation Services handle administrative paperwork and documentation but do not engage in the core employment matching and placement activities of agencies |
| 541612 | Human Resources Consulting Services | Human Resources Consulting Services provide strategic HR advice and policy development while employment agencies focus on operational recruitment and placement execution |
| 611430 | Professional and Management Development Training | Professional and Management Development Training programs prepare job candidates through education but do not perform matching, interviewing, or referring candidates to employers |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | California | 14.5% | 1,020 |
| 2 | Texas | 9.8% | 690 |
| 3 | Florida | 8.7% | 613 |
| 4 | New York | 7.3% | 511 |
| 5 | Illinois | 4.8% | 338 |
| 6 | Georgia | 4.5% | 319 |
| 7 | New Jersey | 3.7% | 258 |
| 8 | Ohio | 3.6% | 255 |
| 9 | Pennsylvania | 3.2% | 222 |
| 10 | North Carolina | 2.8% | 199 |
% Of Establishments
0%
15%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
1,776
Total SBA Loans
$585.9M
Total Loan Volume
$330K
Average Loan Size
10 yrs
Average Loan Term
10.75%
Average Interest Rate
37,200
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: Employment Placement Agencies are classified under NAICS 561311 with a size standard of $34.0 million in average annual receipts per the SBA Table of Size Standards[6]. The SBA supports small businesses[8] through 7(a) loans and other financing for staffing and recruitment enterprises. SBA financing typically features lower interest rates and longer repayment terms compared to conventional commercial loans. Placement agencies meeting the size standard can access federal contracting set-asides and government procurement opportunities. Additionally, 504/CDC loans[9] provide long-term, fixed-rate financing for major fixed assets such as real estate and equipment.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Newtek Bank, National Association | 168 | $104.6M | $623K |
| 2 | Bank of America, National Association | 48 | $42.7M | $889K |
| 3 | MidFirst Bank | 8 | $37.2M | $4.7M |
| 4 | Northeast Bank | 160 | $31.3M | $195K |
| 5 | Readycap Lending, LLC | 80 | $30.4M | $380K |
Frequently Asked Questions
Common questions about this industry.
What types of businesses operate as employment placement agencies?
Employment placement agencies include sole proprietorships, partnerships, LLCs, and corporations. Most have fewer than 10 employees and generate under $1 million in annual revenue. Larger multi-office agencies operate regionally or nationally with multiple locations. All structures must comply with state licensing requirements for employment services per the U.S. Census Bureau[5].
How is the employment placement industry structured?
The industry remains moderately fragmented with many small operators alongside large national staffing corporations. Revenue segments include permanent placement services (the largest segment) and specialized recruitment by occupation or industry. Individual agencies typically operate independently or as divisions of larger staffing companies. Per the Bureau of Labor Statistics[7], employment services is one of the largest subsectors within administrative support.
What is the SBA size standard for employment placement agencies?
Per the SBA Table of Size Standards[6], NAICS 561311 has a size standard of $34.0 million in average annual receipts for the preceding five fiscal years. This determines small business eligibility for federal contracting programs and SBA loans. Businesses exceeding this threshold do not qualify as small under SBA definitions.
What related NAICS codes apply to employment placement?
Related codes include NAICS 561312 (Executive Search Services) for senior positions, NAICS 561320 (Temporary Help Services) for temporary workers, NAICS 561330 (Professional Employer Organizations) for HR outsourcing, NAICS 541612 (Human Resources Consulting) for strategic HR advice, and NAICS 611430 (Management Development Training) for candidate preparation. The U.S. Census Bureau[5] defines each classification.
What industries use employment placement agency services?
Placement agencies serve virtually all sectors including manufacturing, healthcare, finance, technology, retail, and professional services. Some specialize in occupational categories like accounting, nursing, engineering, or administrative roles. Others focus on industry segments such as automotive, food processing, or information technology. Diversification across multiple industries helps agencies manage cyclical demand shifts.
What specific activities are included in employment placement services?
Key activities include listing employment vacancies from employers, screening and interviewing applicants, verifying work history and references, matching candidate qualifications with employer requirements, supporting interviews between candidates and employers, negotiating salary and terms, conducting background checks, and ensuring documentation compliance. Follow-up services may include retention monitoring and employer satisfaction tracking per the U.S. Census Bureau[5].
Can employment placement agencies access SBA loans?
Yes, agencies meeting the $34 million size standard can access SBA financing programs[8] including 7(a) loans for working capital, equipment, and expansion. SBA loans offer favorable terms with lower down payments and reduced collateral requirements compared to conventional loans. Agencies can also access business lines of credit for payroll funding and operational expenses.
Which states have the highest concentration of employment placement agencies?
California and Texas lead in establishment counts, reflecting their large populations and diverse economies. California's major metros including Los Angeles and San Francisco support agencies serving technology, healthcare, and professional services. Texas agencies concentrate in Houston, Dallas, and Austin serving energy, healthcare, and tech. New York, Florida, Illinois, and Pennsylvania also show high concentrations near major business centers.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]U.S. Census Bureau census.gov
- [6]SBA Table of Size Standards sba.gov
- [7]Bureau of Labor Statistics bls.gov
- [8]SBA supports small businesses sba.gov
- [9]504/CDC loans sba.gov
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