Myriad Factors Including Unchanged Unemployment Rates, Rising Competition for Jobs, Talent Shortage & Rise of the Gig Economy Drive Demand for Specialized Employment Services

Growing need for specialized employment training, job placement and support services against the backdrop of unchanged unemployment rates, a competitive job market, growing skills shortage and increased outsourcing of recruitment activities to secure human resources with the right competencies at the lowest cost are poised to drive the global Employment Services market to reach US$913 billion by 2024.

Employment services industry is a provider of a wide range of human resource services to enterprises and businesses. Services offered by the industry include offering temporary employees to client companies, providing assistance to employers in finding the right talent, and offering human resource services to companies. Employment services firms play the role of an intermediary in the labor market by balancing supply and demand for labor, and matching employee skills with quality employment opportunities. Employment services providers offer professional services for delivering work solutions ranging from recruiting and consulting to outsourcing and HR services. Global market for employment services continues to be driven by the positive economic environment and the subsequent emergence of employment needs in various industry verticals. In order to meet the growing demand for adequately skilled workforce, businesses are seeking services of professional employment services providers. With shortage of skills becoming a key concern for various industries, the role of employment service providers continues to gain prominence. The industry is also benefitting from the volatile and shorter economic cycles that are driving demand among employers for temporary labor and staffing. Other factors fueling driving growth in the market include increasing government support, technological advancements fueling digital hiring trends, and demographic factors propelling 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 employment world globally is being transformed due to economic and geopolitical uncertainty, changing demographic mix, growing shortage of skills, shift towards gig economy, the fast-paced digitization trend, and the rising prominence of automation and advanced technologies. Against the backdrop of uncertain economic and geopolitical uncertainty, organizations across the world are increasingly realizing that agility and flexibility are essential to survive and thrive in a rapidly changing fast-changing world. The world’s demographic mix is also undergoing a significant change, with aging population and decline in workforce in several nations leading to severe shortage of labor. Further, individuals are opting to work even after their retirement, most often in a flexible manner. On the other hand, millennial generation of workers, being extremely tech-savvy, have significantly different expectations from their work profiles. In addition, a growing number of individuals are opting to work gigs, i.e. take up jobs involving shorter services or tasks, as against a full time job. New types of jobs are also emerging in a changed environment, thus leading to the rise in demand for new skill sets. This necessitates greater emphasis on education, re-skilling and up-skilling initiatives, areas where employment services providers will play a vital role. The advent of data-driven business models and emerging distribution channels along with rising significance of automation and artificial intelligence (AI) are driving new employment requirements. All of these factors are bringing forth significant changes in the way employees seek work, with more individuals looking for employment that matches their skillset, interests and remuneration expectations. Amidst the changing work conditions, employers are looking to hire workers after careful evaluation of defined needs and skill levels, thus driving growth in the employment service market.

As stated by the new market research report on Employment Services, the United States represents the largest regional market, worldwide. The employment services market is being boosted by the growing strength of labor markets and improving business sentiment, which are driving companies to hire new workers. The industry is expected to benefit from the growing trend among clients in labor-intensive industries to enhance the flexibility and quality of their workforce in order to adapt to changing market conditions and compete effectively. The industry is especially witnessing strong demand for temporary staffing, with favorable structural and regulatory conditions expected to further drive growth in the segment. Demand for staffing services will be especially high in the healthcare sector, which is experiencing a significant shortage of qualified physicians and nurses. Asia-Pacific is forecast to register the fastest CAGR of 7.4% 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.

Major players in the market include 51job, Allegis Group Inc., ADP LLC, Beijing Foreign Enterprise Human Resource Service Co. Ltd, CDI Corporation, Cielo Inc., China International Talent Development Center, Hays Plc, Kelly Services Inc., Korn/Ferry International, ManpowerGroup Inc., Pasona Inc., Poolia AB, Randstad Holding NV, Recruit Holdings Co. Ltd., Robert Half International Inc., Synergie SA, and The Adecco Group, among others.

The research report titled “Employment Services – Market Analysis, Trends, and Forecasts” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, issues, drivers, mergers, acquisitions and other strategic industry activities of global companies. The report provides market estimates and projections for all major geographic markets such as the US, Canada, Japan, 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. The global, US, Canadian, Japanese, European, Asia-Pacific markets for Employment Services are analyzed by the following Service Segments - Temporary Staffing/Agency Work, Permanent Recruitment/Search & Placement, Managed Service Provider (MSP) and Others. Additionally, the global and the US markets for Temporary Staffing/Agency Work are analyzed by the following End-use Sectors – Industrial, Clerical/Office, Information Technology, Engineering, Medical, Accounting & Finance and Others.

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