An updated edition of the May 12, 2025 article.

The staffing industry is an essential pillar of the global economy, connecting businesses with the right talent to drive growth and innovation. From temporary placements and executive search to workforce consulting and outsourcing, staffing companies play a critical role in matching skills with demand across multiple industries.

Emerging trends in 2025 highlight the industry's evolving landscape. The adoption of AI and automation is transforming recruitment by streamlining processes and improving the accuracy of candidate matching. At the same time, there's a growing shift toward skills-based hiring, with many employers moving away from rigid educational requirements in favor of practical competencies. Flexible work models — such as remote and hybrid arrangements — have become the norm, prompting staffing firms to adjust their strategies to meet the evolving expectations of both clients and candidates.

As the job market continues to evolve, propelled by technological advancements and shifting workforce dynamics, staffing firms are experiencing heightened demand. As businesses strive for agility, the need for flexible workforce solutions has surged, making staffing companies attractive investment opportunities.

Projections indicate that the global staffing industry will reach $650 billion in 2025, indicating 5% growth from the previous year. Labor shortages, the burgeoning gig economy, and the digital transformation of recruitment processes fuel this expansion. Companies are investing in AI-powered hiring platforms and workforce analytics, enabling staffing firms to meet contemporary talent acquisition needs.

The staffing sector’s growth offers compelling investment opportunities, with companies positioning themselves as key enablers of economic expansion. As the industry continues to thrive, stocks like Paylocity Holding Corporation (PCTY Quick QuotePCTY - Free Report) , Pegasystems Inc. (PEGA Quick QuotePEGA - Free Report) and Upwork Inc. (UPWK Quick QuoteUPWK - Free Report) are gaining significant traction.

Our Staffing Screen will help you identify the right stocks now to capitalize on the hiring boom. Leveraging advanced tools, our thematic screens highlight companies shaping the future of work, making it easier to invest in this high-growth industry.

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3 Staffing Stocks to Watch

Paylocity stands out in the staffing and human capital management sector by offering innovative, AI-powered solutions that streamline HR processes and enhance workforce management. Their cloud-based platform integrates payroll, benefits, time tracking, and talent management, providing businesses with a unified system to manage the entire employee lifecycle efficiently. This integration reduces administrative burdens and allows HR professionals to focus on strategic initiatives.

A key differentiator for Paylocity is its advanced use of artificial intelligence. The recently introduced AI Assistant offers real-time, contextual support within the platform, simplifying tasks for both HR teams and employees. Additionally, AI-driven features like predictive scheduling and personalized learning recommendations empower organizations to make data-informed decisions, enhancing employee engagement and retention.

Paylocity also emphasizes employee experience through tools like Employee Voice and Recognition & Rewards. These features facilitate continuous feedback and peer recognition, fostering a positive workplace culture. The mobile-first approach ensures that employees can access essential HR functions anytime, anywhere, catering to the needs of a modern, distributed workforce. PCTY currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Pegasystems stands out as a leading provider of customer relationship management and digital process automation software, empowering enterprises to streamline operations and enhance customer engagement.

One of the company’s most promising innovations is the GenAI Blueprint solution, which is witnessing rising demand. GenAI Blueprint functions as an intelligent agent that harnesses artificial intelligence to combine PEGA’s proven best practices with the collective insights of clients and partners. This synergy enables the rapid creation of sophisticated enterprise workflow applications. The platform has recently been enhanced with new features that further boost its functionality. Notably, users can now interact directly with Blueprint workflows and even communicate with them via phone calls, offering a more intuitive and conversational interface.

Another significant growth catalyst is PEGA’s Customer Decision Hub (CDH). This powerful tool leverages statistical AI and advanced predictive analytics to drive hyper-personalized customer interactions. CDH empowers businesses to respond in real time with context-aware messaging and recommendations, enabling them to deliver the next-best actions across various customer touchpoints.

With the increasing adoption of these AI-driven innovations, PEGA is well-positioned to accelerate its revenue growth and strengthen its leadership in the enterprise software space. PEGA also sports a Zacks Rank #1.

Upwork has revolutionized staffing solutions by offering businesses a flexible and efficient platform to connect with a global pool of freelancers. This model allows companies to access specialized skills on demand, catering to both short-term projects and long-term collaborations. By leveraging Upwork's extensive network, businesses can scale their workforce dynamically, ensuring agility in response to market demands.

One of the standout advantages of Upwork's staffing approach is cost-effectiveness. Companies can reduce overhead expenses associated with traditional hiring, such as benefits and office space, by engaging freelancers for specific tasks. This pay-as-you-go model ensures that businesses only invest in the talent they need, when they need it, optimizing resource allocation and budgeting.

Moreover, Upwork's platform streamlines the hiring process through advanced search filters, verified profiles and a robust review system. This transparency facilitates informed decision-making, enabling businesses to quickly identify and onboard qualified professionals. Additionally, built-in communication tools and project management features support seamless collaboration, ensuring that remote teams remain aligned and productive throughout the project lifecycle. UPWK currently sports a Zacks Rank #1.