The industry is well-placed for growth as the economy recovers
London, United Kingdom (PRWEB) May 17, 2012
Temporary or agency work is a bellwether of prevailing economic conditions. According to IBISWorld industry analyst Craig Shulman, “temporary workers are the first to face restructuring pressures during a downturn as companies seek to preserve the jobs of their permanent employees”. However, temporary workers have the benefit of being the first to be hired during the initial recovery phase, as employers assess the strength and sustainability of the upturn. The Temporary-Employment Placement Agencies industry's performance has suffered significantly since the onset of the financial crisis in late 2007. This resulted in a large fall in demand for temporary workers, and industry revenue and profit followed. In 2012-13, the industry is forecast to generate revenue of £26.7 billion. Over the five years through 2012-13, revenue is expected to fall at an annualised 1.5%.
As the economy recovers over the next five years, demand for temporary workers will grow. IBISWorld forecasts that industry revenue will continue to decrease marginally over the next five years to 2017-18. Shulman adds, “the continued decline will be partly due to the introduction of the Agency Worker Regulations, which are expected to increase costs for agencies and employers, thus making employers more reluctant to hire temporary staff”.
The Temporary-Employment Placement Agencies industry has a low level of market share concentration. The industry is highly fragmented, with most operators being small to medium-sized establishments. Although there are some large global players in the industry, their combined share of industry revenue is small. The only major player in the industry is Adecco.
For more information on the Temporary-Employment Placement Agencies industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.
IBISWorld industry Report Key Topics
This industry includes firms that supply labour to clients' businesses for limited periods to supplement their existing labour force. The individuals supplied remain as employees of the temporary-employment agency. However, direct employees at the clients’ worksite undertake supervision of these workers.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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