Online Recruitment Sites industry's revenue will grow at an average annualized rate of 4.7% to $1.8 billion in the five years to 2016
Los Angeles, CA (PRWEB) October 31, 2011
Projected improvement in the labor market for 2012 and beyond will stimulate further revenue growth for online recruitment services, according to IBISWorld, the nation’s largest publisher of industry research. IBISWorld expects that the general unemployment rate will decline from 8.8% in 2011 to 5.3% in 2016. This factor will improve industry performance, as businesses start hiring employees again. Furthermore, growth in corporate profit will cause hiring activities to increase. As a result, IBISWorld forecasts that the Online Recruitment Sites industry's revenue will grow at an average annualized rate of 4.7% to $1.8 billion in the five years to 2016.
In the five years to 2011, IBISWorld estimates that revenue from the Online Recruitment Sites industry has declined at an average annualized rate of 2.5% to $1.4 billion. Until the Great Recession, the industry experienced significant growth throughout the 2000s. While the rising prevalence of digital media has ensured that more consumers than ever are viewing job listings online rather than in their local paper, the recession caused a rapid decline in industry revenue. The demand for online job listings dropped in 2008 and 2009 when companies looked to cut costs by reducing employee head count and delaying hiring decisions. Poor performance has resulted in double-digit revenue declines, ultimately causing profit margins to decline.
According to IBISWorld analyst, Kevin Culbert, the number of sites focusing on niche markets has increased in recent years. “The number of industry firms has risen at an average annualized rate of 2.0% to 2,743 in the five years to 2011,” says Culbert. “However, the recession and falling profit has recently contributed to some industry consolidation.” In August 2010, Yahoo's sold its HotJobs subsidiary to Monster Worldwide for $225.0 million.
Improvement in the labor market over the next five years will stimulate further revenue growth for online recruitment services. The industry is expected to recover slightly in 2011, with revenue growth of 3.2%. Furthermore, the unemployment rate is forecast to fall from 8.8% in 2011 to 5.3% in 2016, boosting demand for online recruitment sites as businesses start hiring employees again. More career sites will serve specific markets. Healthcare and IT will likely represent an increasingly large proportion of online recruitment. An increasing number of firms will develop mobile smartphone applications, allowing job seekers to submit resumes on the go. As a result of these changes, IBISWorld projects that Online Recruitment Sites revenue will increase at an average annualized rate of 4.7% to $1.8 billion in the five years to 2016.
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