Staffing agencies in Chicago: the market, the registry and how to vet one

Most of the 87,000 people on Chicago staffing agency payrolls are temps working at someone else's site, so the agency you pick shapes your workforce, your costs and your legal exposure. Start with the Illinois registry, not the agency's website: using an unregistered day and temporary labor agency is unlawful for the client too.

Market report7 min readUpdated

Short answer

The Chicago metro area had 1,707 staffing agency establishments in 2023, employing 87,141 people on a $4.38 billion payroll (Census County Business Patterns). 1,071 were temporary help locations and 636 placement or executive search offices; 949 were in Cook County. To choose one, match the agency to the work, confirm it's on the Illinois Department of Labor's registered list, ask for the pay rate and markup separately, and price the whole assignment before you sign.

  • 1,707 staffing establishments in the Chicago metro employ 87,141 people; temporary help locations account for 75,536 of them.
  • Cook County has 949 establishments, but Will and Kane counties run the largest locations, at over 90 employees each on average.
  • Illinois clients must check an agency's registration before signing and again every March 1 and September 1.
  • Temps at one client for more than 720 hours in 12 months must get pay and benefits comparable to direct hires, so price long assignments in two parts.
  • For sellers, the 270 locations with 100 or more employees are where payroll, safety and onboarding spend concentrates.
On this page

This report is for Chicago-area operations and HR managers choosing an agency, people researching the local staffing market, and B2B sellers whose customers are staffing firms.

Chicago staffing agencies by the numbers

The figures cover the Chicago-Naperville-Elgin, IL-IN Metro Area (CBSA 16980) and two industry codes: NAICS 56131 (Employment Placement Agencies and Executive Search Services) and NAICS 56132 (Temporary Help Services).

Measure (2023)Chicago metro
Establishments1,707
Employees (week of March 12)87,141
Annual payroll$4,384,218,000
Average employees per establishment51.0
Average annual pay$50,312
Share of US establishments3.29% of 51,830

The two codes behave very differently. Temp agencies employ the workers they place, so their headcount sits on the agency's books:

Industry (2023)EstablishmentsEmployeesAnnual payrollEmployees per location
Temporary help services (56132)1,07175,536$3,362,383,00070.5
Placement and executive search (56131)63611,605$1,021,835,00018.2

Average pay follows the same split: about $44,500 a year in temporary help against about $88,100 in placement and search, where most staff are recruiters rather than temps.

How big they are and where they are

Employees per establishmentEstablishments
Under 5757
5 to 9156
10 to 19154
20 to 49209
50 to 99161
100 to 249181
250 to 49974
500 to 99914
1,000 or moreNot published

In broader bands: 1,067 establishments have 1 to 19 employees, 370 have 20 to 99, and 270 have 100 or more. The published classes add up to 1,706. The 1,707th is a placement agency whose class the Census Bureau withholds (it publishes neither the 500 to 999 nor the 1,000-or-more cell for placement agencies here), so it has at least 500 employees but could sit in either of the top two rows.

CountyEstablishmentsEmployees
Cook County, Illinois94941,071
DuPage County, Illinois29414,658
Will County, Illinois14012,803
Lake County, Illinois134Withheld
Kane County, Illinois919,749
McHenry County, Illinois351,031
Lake County, Indiana32Withheld
DeKalb County, Illinois13543

"Withheld" means withheld by the Census Bureau to protect confidentiality. Cook County holds 56% of the locations but 47% of the employees. Will County averages 91 employees per location and Kane 107, against 43 in Cook: the outer counties are where the big temp branches serving warehouses and plants sit, while Cook has many small recruiting offices.

What these numbers leave out

County Business Patterns counts establishments with paid employees, not companies. A national agency with a dozen local branches counts a dozen times, and a one-person recruiter with no payroll doesn't count, because the self-employed are excluded. Employment is a snapshot of the week of March 12, which understates agencies that staff up for the fourth-quarter warehouse peak. Professional employer organizations (NAICS 56133) are not included, and a corporate head office is classified under NAICS 55, not staffing.

The kinds of agency you'll find

TypeWhat you getHow it's usually pricedWhat to check in Illinois
Day labor and light industrial tempWorkers on the agency's payroll, by the shift or weekHourly bill rate: pay rate plus a markupRegistration with the Illinois Department of Labor (IDOL)
Office, accounting and IT contractContractors for weeks or monthsHourly bill rateChicago business license; registration if it supplies temporary laborers
Temp-to-hireA trial period, then the worker joins your payrollBill rate, plus a conversion fee if you hire earlyAs for temp
Direct hire placementA candidate for your own payrollA one-off fee, usually a share of first-year salaryContract terms and replacement guarantee
Executive searchSenior hires, often retainedRetainer paid in stagesReferences for similar searches

How to shortlist and vet an agency

  1. Write the brief first. Role, shifts, headcount, start date, site and what your own employees earn for the same work.
  2. Build a long list from public sources. IDOL publishes its registered agencies list (as of 1 October 2026 it has 469 agency records and 682 branch records, 93 of them at Chicago addresses). The American Staffing Association member directory filters by job field, such as industrial, health care and IT. The City of Chicago business license data can be filtered by the business activities "Commissioned Staffing of Professional, Secretarial and Clerical Work" and "Operation of Day Labor Agency".
  3. Check registration before you sign. IDOL's FAQ says clients must verify a day and temporary labor agency is registered before contracting, and again every March 1 and September 1. Keep a dated screenshot.
  4. Ask for the numbers separately: pay rate, markup, overtime, conversion fee and the rate after 720 hours (below).
  5. Ask about safety. Illinois agencies must keep records of safety hazard training, and clients must share what the agency needs to train workers. Agree who trains and who supplies protective equipment.
  6. Call two references at similar Chicago sites, then run a short pilot before you hand over your whole peak.

Worked example: pricing a 26-week assignment

Illustrative example. The company and rates are invented to show the arithmetic.

Prairie Dock Logistics (prairiedock.example) runs a distribution center in Will County and needs 12 pickers for 26 weeks at 40 hours a week: 1,040 hours each. The agency quotes a $20.00 pay rate with a 38% markup, a $27.60 bill rate. Prairie Dock's own pickers earn $22.00.

Under Illinois law, a temp assigned to one client for more than 720 hours in 12 months must get pay and benefits comparable to the client's direct employees in the same work. So the assignment has two prices:

HoursPay rateBill rate (38% markup)Cost per worker
First 720$20.00$27.60$19,872.00
Next 320$22.00$30.36$9,715.20
Total$29,587.20

Budgeting at a flat $27.60 gives $28,704.00 per worker. The real figure is $883.20 higher per worker, $10,598.40 across 12 pickers, before benefits or their cash equivalent. Ask every agency to quote the post-720-hour rate in writing.

Selling to Chicago staffing agencies

The market splits in two. Temp help branches, especially the large ones in Will, Kane and DuPage counties, buy for volume: payroll and timekeeping, background and drug screening, safety training, transport for workers, workers' compensation insurance and protective equipment. Placement and search offices, mostly small and in Cook County, buy recruiting tools: applicant tracking, job advertising, candidate data and office space.

Establishment sizeCountWho usually decides
1 to 19 employees1,067The owner, often also the lead recruiter
20 to 99 employees370Branch or operations manager, with the owner signing
100 or more employees270Regional operations, risk and safety, or finance; national brands often buy centrally

A practical plan: filter the IDOL list to the counties you serve, split temp branches from placement offices, then read each agency's job postings. One posting dozens of forklift jobs in Joliet needs different things from a boutique placing accountants in the Loop. Pitch onboarding and safety tools in late summer, before the fourth-quarter peak. At volume, the research is the slow part; Bebop finds agencies that match a description, explains why each fits and drafts the opener. For list-building method, see how to build a prospect list, and research each account with the account research guide.

Email to a temp branch manager
Subject: Safety training before your Q4 ramp

Hi [first name],

I saw [agency] is hiring [number] [role, e.g. forklift operators] for sites in [county] this month.

Illinois agencies have to keep records of safety hazard training for every placement, and in a ramp that paperwork lands on branch staff. We run [length] site-specific sessions and send the training records straight to your files.

Would a 15-minute call on [day] be useful to see whether it fits how [agency] onboards?

[Your name]

Local sources for names and checks

SourceWhat it gives you
IDOL Day and Temporary Labor Services ActThe rules, fees and registered agencies list
IDOL Private Employment AgenciesA separate license list of about 50, mostly talent, modeling and household agencies
City of Chicago business licensesLicenses with address and business activity
ASA member directoryNational association members, searchable by location and job field
Illinois Search & Staffing AssociationThe state association for staffing firms, affiliated with the ASA
Chicagoland Chamber of CommerceMember directory
World Business ChicagoThe city's economic development agency, for employer expansions

Next step: turn this market into a ranked list of accounts with how to build a prospect list.

Sources

Written by the Bebop team at Blackpearl Group. Last updated .

Questions people ask

How many staffing agencies are there in Chicago?

The Chicago metro area had 1,707 staffing agency establishments in 2023 according to Census County Business Patterns: 1,071 temporary help locations and 636 placement or executive search offices, with 949 in Cook County. These are locations with paid employees, not companies. The Illinois Department of Labor's registered list for day and temporary labor agencies had 469 agency records and 682 branch records statewide as of 1 October 2026.

How do I check if a temp agency is registered in Illinois?

Open the registered agencies list on the Illinois Department of Labor's Day and Temporary Labor Services Act page and search for the agency's legal name and branch address. Clients must check before signing a contract and again on March 1 and September 1 each year, and it's unlawful to use an unregistered agency. If a name is missing, ask the agency for its registration and contact the department to confirm.

Do temp workers in Illinois get the same pay as permanent staff?

After a point, yes. Under the Day and Temporary Labor Services Act as amended, a temp assigned to the same client for more than 720 hours in 12 months must receive pay and benefits comparable to the client's directly hired employees doing the same work, or the hourly cash equivalent of the benefits. A federal court declined to block the benefits provision in May 2025. Check the current position with counsel before you set rates.

What's the difference between a staffing agency and a temp agency?

A temp agency is one kind of staffing agency. It employs workers and places them at your site for a period, billing you an hourly rate. Staffing agencies also include direct hire placement firms, which recruit people onto your own payroll for a one-off fee, and executive search firms, which handle senior roles, often on a retainer. Census data counts temp agencies under NAICS 56132 and placement and search under NAICS 56131.

How much do staffing agencies charge in Chicago?

There's no official published rate. Temp agencies charge an hourly bill rate made up of the worker's pay rate plus a markup that covers payroll taxes, insurance, recruiting and margin, so ask for the two parts separately. Direct hire firms usually charge a share of first-year salary. In Illinois, price long assignments in two parts, because pay must rise to match your direct employees after 720 hours.

Find the Chicago agencies that fit your offer

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