Alexandria, VA, September 17, 2026 — The National Association of Professional Employer Organizations (NAPEO) today released new data on the size and scope of the professional employer organization (PEO) industry. The findings show sustained growth of the footprint of the PEO industry, reinforcing the growing role PEOs play in supporting small and mid-sized businesses, their employees and communities across the country.
“This data confirms what we continue to see across the industry — PEOs are a growth engine for small and mid-sized businesses nationwide, providing better benefits for their employees and generating revenue for local economies,” said NAPEO President & CEO Casey Clark. “PEOs now employ a workforce that is triple the size of Walmart or Amazon, and this data confirms their position as a cornerstone of the small business economy.”
The report’s findings highlight the industry’s continued strength:
- More than 500 PEOs currently operate in the United States, employing 5.4 million worksite employees (WSEs) across more than 233,000 client businesses.
- These employees were paid a total of $386 billion in wages in 2025, as the industry generated $446 billion in total revenue.
- PEOs now reach an estimated 14% of businesses with 20-499 employees, and the industry has grown at a compounded annual rate of 7.2% since 2008.
“PEOs continue to outpace the broader economy, and this data shows exactly why,” said Clark. “By handling payroll, benefits, compliance and other HR functions, PEOs free up small businesses to focus on what they do best — growing and creating jobs.”
The research, conducted by economists Laurie Bassi and Dan McMurrer of McBassi & Company, uses a methodology consistent with the firm’s prior industry footprint studies in 2021 and 2023, allowing for direct comparison of growth trends over time.
The full report is available here.