Employer of Record Statistics: Key US Data & Trends

US companies are expanding their use of distributed and international workforces, increasing demand for Employer of Record (EOR) services. The global EOR market reached $5.74 billion in 2025 and is projected to reach $10.33 billion by 2031. The market is expected to grow at a 10.55% CAGR from 2026 to 2031.

The statistics below highlight US EOR market growth, adoption, international hiring, remote work, compliance, and market segmentation.

US Employer of Record Market Statistics

North America accounted for 37.86% of global employer of record revenue in 2025, with the US driving strong demand for international hiring. In 2026, 76% of US payroll respondents planned to increase international headcount within the next 12 months. The US also represented 27.42% of the global EOR market, according to a separate market estimate.

EOR Adoption and International Hiring Statistics

Here’s a look at how North American companies are adopting EOR services and expanding their international workforces.

EOR Adoption Across North America

North American companies use different approaches when building international workforces, including fully owned entities, independent contractors, and professional employer organization (PEO) services that involve co-employment.

82% use fully owned foreign entities or subsidiaries, while 45% use independent contractors or freelancers. EOR services account for 27% of usage, compared with 46% among European respondents. This leaves North America 19 percentage points behind Europe in EOR adoption.

International Hiring Growth

International hiring is expanding across US and North American companies:

• 76% of US payroll respondents intend to increase international headcount within the next 12 months.
• 72% of North America-headquartered multinationals recruit internationally.
• 64%+ of technology organizations have distributed workforces across multiple countries.

Enterprise and SMB EOR Use

EOR use differs by company size, with enterprises focused more on compliance and risk while small and medium-sized enterprises (SMEs) use EOR services primarily for growth and employment contracts.

Large enterprises account for 52.64% of the EOR market in 2025, while SMBs are projected to grow at an 11.92% CAGR through 2031.

US Employer of Record Market Statistics

Let’s take a look at the latest statistics on remote work across the US workforce and remote teams.

Remote Work Across the US Workforce

Remote work accounts for a substantial share of work across full-time employees in the US workforce. Americans aged 20 to 64 worked from home for approximately 25% of paid workdays in 2025. Recent SWAA estimates placed the share at around 27%, while about 15% of workers worked fully remotely.

Daily and weekly survey measures also show significant work from home (WFH) participation:

• 32.6% reported WFH on a typical day in the American Time Use Survey (ATUS).
• 19.5% reported WFH during a typical week in the Current Population Survey (CPS).

US Remote Work Demographics

Remote work varies across different groups within the US workforce:

• Workers with children under 8 have WFH rates 7% higher.
• Women have WFH rates approximately 2% higher than men.
• College and graduate degree holders have WFH rates 15% higher than workers without post-secondary education.

Distributed Work and EOR Demand

Distributed work is expanding across technology organizations and businesses with international talent:

• 64%+ of technology organizations have distributed workforces across multiple countries.
• Nearly 67% use Human Resources Information Systems (HRIS) integrated with EOR services.
• Around 70% of businesses employing international talent rely on digital HR and payroll systems.

US Cross-Border Hiring Trends

Here’s an insight into US and North American hiring priorities and broader cross-border hiring patterns.

Cross-Border Hiring Priorities

Among North American organizations, 65% prioritize hiring within North America, followed by Southeast Asia, Asia-Pacific, and Latin America.

Top Cross-Border Hiring Destinations

A 2025 data shows the countries receiving the most cross-border hires in its dataset.

Most Common Cross-Border Roles

Software developers accounted for the largest share of cross-border hires in the studied dataset.

EOR Compliance and Workforce Statistics

Here’s a look at the latest statistics on compliance risks, regulatory changes, and workforce management.

Regulatory Compliance Is a Major EOR Driver

Organizations face several challenges when managing international employees and legal entities:

• 65% cite regulatory and compliance risk as a key consideration.
• 63% cite the cost of operating international entities.
• 51% are responding to the growth of remote working models.
• 40% are considering reducing or consolidating existing entities.
• 34% identify high HR overhead as a factor.

Worker Classification and Compliance Technology

Worker classification rules are tightening across the US, while employment regulations continue to change. Tax withholding and tax filing also adds compliance requirements for employers managing international workforces.

More than 33 states have strengthened worker classification and employment regulations. Around 58% of employers prioritize automated compliance management, while more than 58% report regulatory changes several times each year.

EOR Cost and Market Segmentation Statistics

The following figures break down the EOR market across company size, services, business models, and industries.

EOR Market by Service Type

Payroll processing and statutory benefits administration accounted for 39.84% of EOR revenue in 2025. Meanwhile, compliance management is projected to grow at a 12.74% CAGR through 2031, making it one of the faster-growing service segments for employee benefits. These services can also cover benefits such as paid leave.

EOR Market by Business Model

The aggregator model holds a significant position within the EOR market, accounting for 57.21% of market share in 2025.

EOR Market by Industry

Technology remains a major EOR market segment, while healthcare and life sciences show strong projected growth.

IT and telecom accounted for 29.18% of the market in 2025. Meanwhile, healthcare and life sciences are projected to grow at a 12.66% CAGR through 2031.

The Bottom Line

US employers are expanding international hiring while managing increasingly complex compliance and workforce demands. AI and automation are becoming a larger part of HR operations, with 64% of routine HR tasks expected to be automated by 2026.

As international hiring grows, EOR platforms are moving beyond payroll and compliance toward integrated workforce management. The combination of global hiring, regulatory pressure, General Data Protection Regulation (GDPR) requirements, data privacy, and AI-driven automation will continue shaping the US EOR market.

Fair Use Statement

Readers may share this content for noncommercial purposes, provided they include proper attribution and a link to the original article.