Engineering Staffing Outlook: What to Expect in the Second Half of 2024

Will the staffing industry expand, contract, or stay the same in the latter half of 2024?

Several recruitment agencies sensed an impending decline after the US staffing business had unprecedented expansion in 2023. The top worldwide research and advice company for staffing solutions, Staffing Industry Analysts (SIA), predicted that the US staffing market's revenue would drop by 10% last year. Yet, engineering stands out among the few US job sectors with a promising outlook, poised for expansion in 2023. This comes after two years of strong growth, so it should be no surprise that the engineering sector is expected to increase at an anticipated 5% annual pace in 2024. The market value of this growth comes to $10.4 billion, making it one of the few areas of the US staffing market that is anticipated to expand.

This blog discusses the elements that will primarily influence engineering staffing in Q3 and Q4 of 2024.

Factors Affecting Engineering Staffing

1. Economic Landscape

The engineering sector has persevered through uncertain markets and economic challenges. Federal funding, anticipated to last until 2024, will be allocated to numerous manufacturing and construction projects that require engineers. The segment's broad base protects it from vulnerability in specific industries by employing engineers with diverse skill sets across various businesses. The highly specialized nature of many engineering positions heightens competition for qualified workers, making it challenging to replace talent. Additionally, ongoing backlogs in engineering projects fuel the growth of engineering employment by increasing the demand for engineering skills.

2. The Upcoming United States 2024 Elections

Only five months of this year have passed, and the 60th presidential election is due in November 2024. The repercussions of potential legislative changes on the US staffing industry have been felt already, which may influence hiring decisions and cause a temporary halt. Staffing firms have a proven track record of swiftly recovering from difficult conditions and adapting to change.

Significant effects of the US election in 2024 on the market for engineering staffing are:

• Engineering Projects to Receive Federal Funding: Recent federal laws such as the Jobs Act, the CHIPS Act (Creating Helpful Incentives to Produce Semiconductors), Fiscal Responsibility, and Infrastructure Investment have boosted the growth of infrastructure and manufacturing projects. It is expected that these projects will start to begin or continue in 2024 and beyond, creating a consistent need for engineering expertise and fostering the expansion of the engineering staffing market.
• Policy Changes: There is a probability that the results of the 2024 election may impact the engineering staffing market. Also, any proposed legislation changes may affect employment laws, labor laws, and the business environment in general. It is vitally important for staffing agencies to closely observe the election dynamics and be prepared to adjust their strategies and methods in response to any modifications to the regulatory landscape. Staffing companies are recommended to concentrate on particular industries and regions strategically.

The election results and policy changes affecting competent engineering expertise's availability and competitiveness may impact staffing strategy and recruiting decisions.

3. AI's Effects on Engineering Staffing

Artificial Intelligence is a disruptive force today, rapidly changing the technology landscape, altering sectors, and upending conventional business practices. It has a wide range of effects on the engineering workforce, including the changing employment market, engineering landscape, and possibilities for the future.

• Integrating AI and automation technologies in engineering raises concerns about job displacement, especially in positions involving manual or repetitive activities. To reduce this risk, engineers need to be ready to work well with experts in a variety of domains, including robotics, data science, and computer science, and to adapt to new technology.
• AI's effect on engineering staffing has advantages and disadvantages. AI improves the engineering workforce and opens up new career possibilities, but it also means that engineers must constantly upgrade their skill sets and adjust to their industry's changing needs.

Considering all the factors and the reports of SIA, engineering staffing is expected to expand by 5% per year starting in 2024 and continue to trend positively. This suggests that there will be more job openings in the engineering sector, boosting the engineering staffing sector's business. Sterling Support Services, a unit of iQuasar LLC, is well-positioned to navigate the engineering staffing market in 2024. Our dedication lies in offering our clients top-tier engineering talent, which we do with a comprehensive understanding of the drivers of growth and the challenges AI poses. Our ability to adjust to the industry's ever-changing needs and proficiency in employing engineers make us the perfect partner for businesses looking to grow their engineering departments.

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