The Global Market for Employment Services is Projected to Reach US$700 Billion by 2022

Skill Shortages & the Ensuing Complexity of Recruiting Spurs Outsourcing of Recruitment Processes & Drives Demand for Employment Services, According to a New Report by Global Industry Analysts, Inc. 

GIA launches comprehensive analysis of industry segments, trends, growth drivers, market share, size and demand forecasts on the global Employment Services market. The global market for Employment Services is projected to reach US$700 billion by 2022, driven by the growing trend towards outsourcing recruitment processes against the backdrop of high unemployment, skill shortages, and the ensuing competition for talent and skill as companies seek to secure human resources with the highest possible core competencies.

As companies continue to deal with new challenges caused by structural shifts and expand their international footprint in the increasingly globalized world, new labor markets are opening up. Recruitment and employment service companies are playing a pivotal role in helping companies forge a more globalized workforce. As labor markets globally are witnessing changes in their fundamental structures, both organizations and governments are looking for a mobile and diversified workforce for swiftly adapting and attaining competitive advantage. The employment services sector assists companies and employees in adapting to cyclical and seasonal changes in economy by offering solutions that allow both public and private organizations to deal with fluctuations in demand and adjust their staffing requirements accordingly. As economies swing between phase of negative and positive growths, there is a strong demand for employment services.

The employment services industry is benefitting from the volatile and shorter economic cycles that are driving demand among employers for temporary labor and staffing.  Other factors driving growth in the market are increasing government support, technological advancements fueling digital hiring trends, and demographic factors driving demand for health and life sciences workers. Another important growth driver is the rising need to outsource recruitment processes in order to narrow focus to core-competencies. The Recruitment Process Outsourcing (RPO) segment is driven primarily by cost reduction and scalability factors, particularly during adverse economic conditions. Increasing popularity of Integrated RPO, Single-country RPO, and Multi-country Recruitment Process Outsourcing (MCRPO) augurs well for market expansion. Other important factors benefiting market prospects include growing prominence of agile and flexible workforce, the transforming social networking landscape, steady proliferation of smart data technologies and cloud-based recruitment solutions, and the exponential increase in urban population. Temporary Staffing/Agency Work represents the largest employment services segment supported by the shift away from permanent placement and towards contracted and temporary positions. By the end of the current decade, around 45% of the workforce worldwide is forecast to represent only freelancers.

As stated by the new market research report on Employment Services, North America, Europe and Japan dominate the global market. However, slower economic growth and increasing unemployment levels continue to undermine wage growth in these economies. Asia-Pacific is forecast to emerge as the fastest growing market with a CAGR of 7.0% over the analysis period led by factors such as emergence of Asian economies as the world hub for knowledge process outsourcing (KPO) centers, need for talent that meets the requirements of fast growing regional economies, shifting workforce dynamics such as labor migration, skills and student mobility, and development of the private business sector and the ensuing need for talent that complements organizational goals. 

Key players covered in the report include 51job, Adecco SA, Adecco Staffing USA, Ajilon, Allegis Group, Aon Hewitt LLC, Automatic Data Processing, Inc., Beijing Foreign Enterprise Human Resource Service Co. Ltd., CDI Corporation, Cielo, Inc., China International Talent Development Center, Hays Plc, Kelly Services, Inc., ManpowerGroup Inc., Pasona, Inc., Poolia AB, Randstad Holding NV, Synergie SA, and USG People B.V., among others.

The research report titled “Employment Services: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, growth drivers, product/service launches and strategic industry activities of major companies worldwide. The report provides market estimates and projections for all major geographic markets including the US, Canada, Europe (France, Germany, Italy, UK, Spain, Russia, and Rest of Europe), Asia-Pacific (Australia, China, India, and Rest of Asia-Pacific), Latin America (Brazil, and Rest of Latin America) and Rest of World. Service segments analyzed in the report include Temporary Staffing/Agency Work; Permanent Recruitment/Search and Placement; Recruitment Process Outsourcing (RPO); and Others. Key end-use sectors analyzed for Temporary Staffing/Agency Work for the global and US markets include Industrial, Clerical/Office, Information Technology, Engineering, Medical, Accounting & Finance, and Others.

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