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PEO KEY FACTS & STATISTICS
Industry Size & Scope
| 230,000+ | Small and mid-sized businesses partner with a PEO |
| 5.4 million+ | People employed through PEO arrangements nationwide |
| 14% | Of all employers with 20-499 employees use a PEO |
| 7.2% | Long-term average annual growth rate since 2008 |
Impact On Client Business
| 2x | Faster growth for businesses that use a PEO vs. comparable businesses |
| 12% | Lower employee turnover among PEO clients |
| 50% | Lower likelihood of going out of business for PEO clients |
| 27% | Return on investment for businesses using a PEO, through cost savings alone |
| 16% | Additional increase in profitability for PEO users vs. comparable non-PEO firms |
| 52% vs. 23% |
Share of 10–49 employee businesses with a retirement plan: PEO users vs. non-users |
2025-2026 Business Climate (NAPEO Small Business Survey)
| 80% vs. 67% | Share of PEO users vs. non-users reporting business growth in 2025 |
| 83% vs. 75% | Share of PEO users vs. non-users expecting growth in 2026 |
Sourcing Notes:
- PEO Industry Footprint: 2026, research by economists Laurie Bassi and Dan McMurrer, cited via NAPEO FAQs and Industry Research & Data (September 2026)
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Growth, turnover, survival, ROI and retirement figures: research by economists Laurie Bassi and Dan McMurrer, cited via NAPEO FAQs and Industry Research & Data.
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2025–2026 growth and outlook figures: NAPEO 2025 Annual Tracking Survey, released February 2026.