Good news in today's economy is welcome in almost any form. Some days, just maintaining the status quo is a reason to cheer. Reports on whether Professional Employer Organizations (PEOs) are “status quo” are mixed. While some industry experts cite increases in PEOs' overall client base, along with a greater acceptance by businesses not traditionally PEO-friendly, they caution that many PEOs are signing up clients with far fewer employees than just a few years ago.

On the positive side — for PEOs and the economy in general — self-employment is on the rise as the recession drives workers to business innovations. Baby Boomer retirement problems are contributing to an increased interest in small business, and experts predict that Generation Y will continue to be more entrepreneurial than youth in recent generations. These factors, along with the low market penetration of PEOs overall, are creating a growth opportunity for PEOs throughout the country.

There are approximately 700 PEOs nationwide, with some $68 billion in gross revenues, according to the National Association of Professional Employer Organizations (NAPEO). PEOs currently serve approximately 300,000 businesses and 2 to 3 million workers across the county in a diverse mix of businesses. The industry grew $5 billion in 2008.