Employment Placement Agencies Revenue Benchmarks
The average employment placement agencies business in the United States generates $2.4M in annual revenue, according to the U.S. Census Bureau Statistics of U.S. Businesses (SUSB 2021). There are 5,858 employment placement agencies businesses in the U.S., employing 209,442 workers with an average profit margin of 8.0%. The average employee in this industry earns $63K per year (Bureau of Labor Statistics QCEW 2023).
What Does a Employment Placement Agencies Business Actually Do?
Permanent-hire recruiting agencies charging % of first-year salary. Distinct from staffing/temp agencies.
Who buys: Employers seeking specific talent, career-transition candidates (some pay-side agencies).
Average Revenue
$2.4M
per year
Profit Margin
8.0%
industry average
Revenue / Employee
$68K
per year
Total Businesses
5,858
in the US
Est. Owner Income
$194K
small business avg
Labor Cost
70.0%
of revenue
Avg Employee Wage
$63K
per year (BLS)
Market Saturation
1.8
firms per 100K people
How Much Do Employment Placement Agencies Charge?
Placement agencies (permanent hire, distinct from temp) charge % of first-year salary.
| Service | Typical range |
|---|---|
Permanent placement fee | 15–25% of first-year salary |
Retained search (up front) | 30–35% split into thirds |
Guarantee period (typical) | 60–90 days |
Ranges based on industry rate surveys and typical published pricing. Actual quotes vary by city, business size, and job complexity.
Complete employment placement agencies business plan
A 12-section data-backed business plan for a employment placement agencies business — executive summary, market analysis, competitive landscape, revenue model, 3-year financial projections, operations, marketing, staffing, funding request. Pre-populated with real Census, IRS, and BLS data on this industry. Free to view.
Cost Structure — Where Every $100 in Revenue Goes
Approximate P&L breakdown for the employment placement agencies industry. Labor share and net profit are grounded in Census SUSB and IRS SOI data. Other lines are split using sector-typical ratios.
| Category | Per $100 revenue | Per typical business | What's in it |
|---|---|---|---|
Direct service costs | $4 | $106K | Cleaning supplies, uniforms, equipment consumables — depends on service type. |
Wages & benefits | $70 | $1.7M | Payroll for all employees at the business (owner comp not included for small owner-operators). |
Rent & facilities | $3 | $80K | Rent or mortgage on business location plus utilities tied to the space. |
Marketing & advertising | $2 | $53K | Google/Meta ads, SEO, print, referral fees, event sponsorships. |
Other operating costs | $12 | $293K | Insurance, background checks, training, transportation, admin. |
Net profit | $8 | $194K | What remains for the owner or shareholders after all business expenses. |
Directionally accurate for a typical business in the industry. Individual businesses vary widely — a franchise may run a very different cost mix from an independent, and older established businesses often have lower labor share than newer ones.
Average Revenue by Business Size
Industry Dynamics (Census BDS 2023)
New Business Rate
12.99%
openings/year
Closure Rate
13.67%
closings/year
Net Job Growth
-3.91%
annual
Businesses Closed
2,814
in 2023
Firm Count Trend
Should You Start a Employment Placement Agencies Business?
Startup Cost
$50K – $250K
Break-Even
9 months
5-Year Survival Rate
50.0%
Related Industries
Frequently Asked Questions
- What does a employment placement agencies business do?
- Permanent-hire recruiting agencies charging % of first-year salary. Distinct from staffing/temp agencies. Employers seeking specific talent, career-transition candidates (some pay-side agencies).
- How much do employment placement agencies charge?
- Placement agencies (permanent hire, distinct from temp) charge % of first-year salary. See the pricing table above for typical rates by service type.
- How much does the average employment placement agencies make per year?
- The average employment placement agencies business generates $2.4M in annual revenue, based on U.S. Census Bureau data (SUSB 2021). After expenses, the estimated owner profit is $194K per year at a 8.0% profit margin.
- How many employment placement agencies businesses are there in the US?
- There are 5,858 employment placement agencies businesses operating in the United States, employing a total of 209,442 workers.
- How much does it cost to start a employment placement agencies business?
- Startup costs for a employment placement agencies business typically range from $50K to $250K, with a 5-year survival rate of 50.0%.
- What is the average salary in the employment placement agencies industry?
- The average employee in the employment placement agencies industry earns $63K per year, according to Bureau of Labor Statistics data (QCEW 2023).
Industry Growth & Survival
The employment placement agencies industry is contracting — losing jobs at a net rate of 3.9% per year. More establishments are closing (13.7%) than opening (13.0%), suggesting market challenges.
Approximately 48% of employment placement agencies businesses survive their first 5 years. This is near the national average (~50%), with typical business risk. In 2023, 2,814 firms in this industry closed permanently.
Employment & Wages
The average employee in the employment placement agencies industry earns $63,110/year. This is near the national average of ~$65K. With 25,999 establishments employing 265,717 people, the typical business has about 10 employees.
Industry Trend (2000–2023)
The employment placement agencies industry has grown 0% since 2000 (from 26,403 to 26,532 firms).
See full historical statistics →Compare Employment Placement Agencies revenue with other industries: