In 2023, the staffing industry saw a decline in M&A activity compared to the previous year. However, with 116 publicly announced transactions in North America, it is clear that the industry remains active and resilient.

Although deal activity fell sharply in Q2, it rebounded in the following quarters as interest rates stabilized. This trend highlights the industry’s ability to adapt and thrive in a rapidly changing market.

Notably, the staffing sector experiencing the most activity shifted in 2023. While IT was the most active sector in 2022, Place & Search took the top spot with 23 deals. However, both sectors remained strong, with 21 deals for IT and only a slight decrease from 25 to 23 deals for Place & Search.

On the other hand, healthcare deals continued to decline in 2023, accounting for only 17 transactions. This can likely be attributed to the ongoing challenges and uncertainty in the healthcare industry.

Interestingly, the Northeast region was the only region to see an increase in M&A activity, with 35% of US staffing targets being based there. The Midwest region ranked second with 18 deals, while the Western and Central regions experienced significant declines with a 50% decrease in staffing targets.

In addition, inter-reg