NAICS 561320 Quarterly Industry Report
Temporary Help Services
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 561320Sector: Administrative and Support and Waste Management and Remediation Services (56)Updated: Q1 2026
About This Report
This industry profile for Temporary Help Services (NAICS 561320) draws on data from the Bureau of Labor Statistics[5], U.S. Census Bureau, and SBA size standards database[7]. Published by Fair Market Value and updated quarterly, it provides staffing industry analysts, business brokers, and valuation professionals with current market 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 temporary help services industry.
Share of Administrative and Support and Waste Management and Remediation Services
8.6%
By establishment count, 2022 Census[2]
NAICS Sector
56
Administrative and Support and Waste Management and Remediation Services
Industry Definition & Overview
Temporary Help Services (NAICS 561320) encompasses establishments primarily engaged in supplying workers to client businesses for limited periods of time. This industry acts as a critical labor market intermediary, connecting job seekers with employers while providing flexibility during business cycles. Staffing agencies screen candidates, handle payroll administration, and manage worker benefits, allowing client firms to scale operations without permanent hiring commitments.
The sector represents about 2 percent of total nonfarm employment in the United States. Since the Great Recession, temporary help employment grew 75 percent (adding 1.3 million jobs) compared to 19 percent growth in total private employment per the Bureau of Labor Statistics[5]. Manufacturing represents the largest concentration of temporary workers, reflecting production-oriented demand. Geographic concentration is pronounced: California alone accounts for about $41.4 billion in annual staffing sales, while Texas and New York contribute $16.6 billion and $11.8 billion respectively.
Temporary help services function as a leading economic indicator. Employers use temporary staffing to reduce hiring delays, evaluate potential permanent hires, and avoid separation costs during downturns. The workforce skews younger than the national average and includes a higher proportion of female workers. Industries with highest temp worker use include manufacturing, transportation, and increasingly technology sectors in western states per the U.S. Census Bureau[6].
What's Included in This Industry
- Help supply services involving temporary placement of workers
- Temporary help agencies matching workers with client employers
- Payroll administration and tax withholding for temporary workers
- Worker screening, testing, and credential verification services
- Professional staffing for specialized occupations and technical roles
- Government contracting and federal workforce placement
- Seasonal worker placement and recruitment services
- On-call and as-needed workforce management
- Benefits administration for temporary employees
- Background check and employment verification services
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 | Temporary Help Services | 56132 |
| National Industry | Temporary Help Services | 561320 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 561311 | Employment Placement Agencies | Employment Placement Agencies provide permanent job placement services rather than temporary staffing, focusing on direct hire opportunities where candidates join employer payrolls |
| 561312 | Executive Search Services | Executive Search Services specialize in senior management and C-level recruitment for permanent positions, contrasting with temporary staffing's focus on short-term worker supply |
| 561330 | Professional Employer Organizations | Professional Employer Organizations assume employer responsibilities including payroll and benefits for client workforces through longer-term leasing rather than short-term temporary assignments |
| 561110 | Office Administrative Services | Office Administrative Services provide contracted backend administrative functions like billing and recordkeeping rather than supplying temporary on-site workers to client operations |
| 561210 | Facilities Support Services | Facilities Support Services supply ongoing on-site operational staff for building management, differing from temporary help which provides workers for limited-duration assignments |
| 611430 | Professional and Management Development Training | Professional and Management Development Training programs prepare workers with skills that temporary staffing agencies then deploy to client businesses for short-term assignments |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | California | 10.4% | 4,104 |
| 2 | Texas | 8.6% | 3,367 |
| 3 | Michigan | 6.8% | 2,681 |
| 4 | Florida | 5.6% | 2,189 |
| 5 | Illinois | 4.0% | 1,588 |
| 6 | Georgia | 4.0% | 1,568 |
| 7 | Pennsylvania | 3.8% | 1,497 |
| 8 | Ohio | 3.7% | 1,443 |
| 9 | New York | 3.7% | 1,439 |
| 10 | North Carolina | 3.5% | 1,380 |
% Of Establishments
0%
10%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
512
Total SBA Loans
$230.6M
Total Loan Volume
$450K
Average Loan Size
10 yrs
Average Loan Term
10.77%
Average Interest Rate
13,088
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: The SBA classifies Temporary Help Services (NAICS 561320) with a size standard of $34.0 million in average annual receipts per the SBA Table of Size Standards[7]. This determines small business eligibility for federal contracting and SBA loan programs. Small temporary help firms compete alongside larger national staffing organizations. SBA financing programs[8] support working capital, equipment purchases, and expansion for qualifying agencies. Eligible businesses can access SBA 7(a) loans[9] for working capital, equipment, and acquisition financing, while 504 loans[10] support major fixed-asset purchases including real estate and heavy machinery.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Newtek Bank, National Association | 56 | $47.2M | $843K |
| 2 | First Internet Bank of Indiana | 32 | $44.7M | $1.4M |
| 3 | Glacier Bank | 8 | $27.8M | $3.5M |
| 4 | Commerce Bank | 8 | $17.6M | $2.2M |
| 5 | Lendistry SBLC, LLC | 48 | $14.2M | $295K |
Frequently Asked Questions
Common questions about this industry.
What types of businesses operate in the temporary help services industry?
NAICS 561320 includes for-profit staffing agencies supplying workers to client businesses, government contractors providing federal workforce solutions, and specialized firms serving specific industries. Operators range from small local agencies with single offices to large national networks with hundreds of locations per the U.S. Census Bureau[6]. Some specialize in manufacturing, healthcare, or technology placements, while others provide general staffing across multiple sectors.
How is the temporary help services industry structured?
Staffing agencies serve as intermediaries between job seekers and employers. Agencies identify client needs, recruit and screen workers, manage payroll and tax responsibilities, and handle benefits administration. Workers maintain employee status with the staffing agency rather than the client company. Industry structure ranges from independent small agencies competing regionally to large national corporations per the Bureau of Labor Statistics[5].
What is the SBA size standard for temporary help services?
Per the SBA Table of Size Standards[7], firms in NAICS 561320 are classified as small businesses if they have average annual receipts of $34.0 million or less. This threshold applies to federal contracting eligibility and SBA loan program qualification. Businesses exceeding this revenue threshold are considered large for federal contracting purposes.
What related NAICS codes are similar to temporary help services?
Related codes include NAICS 561311 (Employment Placement Agencies) for permanent placement, NAICS 561312 (Executive Search Services) for senior recruitment, NAICS 561330 (Professional Employer Organizations) for HR outsourcing, and NAICS 561110 (Office Administrative Services) for contracted administrative functions. The U.S. Census Bureau[6] defines each classification distinction.
What industries depend most on temporary staffing services?
Manufacturing represents the largest concentration of temporary workers, driven by production scheduling and capacity needs. Transportation and warehousing show high use rates. Growing demand appears in technology sectors, particularly in western states. Healthcare facilities employ temporary staff for nursing and medical support. Seasonal industries including agriculture, food processing, and retail depend on temporary workers during peak periods.
What specific activities fall under NAICS 561320?
NAICS 561320 includes worker placement and matching, payroll administration and tax withholding, candidate screening and testing, professional staffing for specialized occupations, government workforce contracting, seasonal and on-call worker management, benefits administration, and background verification. Excluded activities include permanent employment placement (561311) and full employer-of-record services per the U.S. Census Bureau[6].
Can temporary help services firms get SBA loans?
Yes, firms meeting the $34 million size standard qualify for SBA programs[8] including 7(a) loans for working capital and expansion, microloan programs for smaller operations, and federal contracting set-asides. SBA financing helps staffing agencies expand operations, acquire technology systems, and fund payroll growth during scaling periods.
Which states have the highest concentration of temporary staffing activity?
California leads with about $41.4 billion in annual staffing sales, followed by Texas at $16.6 billion and New York at $11.8 billion. The western region experienced 23.4 percent growth in temporary workers since 2014, driven by technology sector expansion. Southern states including Florida and Georgia provide business incentives supporting staffing agency growth per the Bureau of Labor Statistics[5].
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]Bureau of Labor Statistics bls.gov
- [6]U.S. Census Bureau census.gov
- [7]SBA size standards database sba.gov
- [8]SBA financing programs sba.gov
- [9]SBA 7(a) loans sba.gov
- [10]504 loans sba.gov
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