The effect of the global financial crisis on the industry was mild compared with similar industries in other countries.
Melbourne, Australia (PRWEB) December 05, 2013
Australia bypassed the worst of the global financial crisis with regard to net job losses and income levels. Therefore, the effect of the crisis on the Australian Employment Placement and Recruitment Services industry was mild compared with similar industries in other countries. According to IBISWorld industry analyst Alen Allday, “unemployment rose marginally in 2008-09 and 2009-10 in Australia, a trend that quickly reversed in subsequent years, with demand for employment placement services rebounding strongly in 2010-11.” Employment demand remained strong in 2011-12 and 2012-13. This is expected to have continued through 2013-14.
IBISWorld expects industry revenue to increase by an annualised 6.1% over the five years through 2013-14, to $3.1 billion. This includes the smallest annual gain in 2009-10 of 0.9% due to the global financial crisis. Revenue surged in 2010-11 and grew strongly in subsequent years, leading to a solid annualised growth rate over the past five years as the national unemployment level remained low and the labour force grew. Industry revenue is expected to increase by 5.9% over 2013-14. This is due to Australia's low unemployment rate and strong continuing demand for mining, resources, health, trade and administration positions. “Despite uncertainty among international global clients and reduced business confidence in the United States and Europe, the Employment Placement and Recruitment Services industry is forecast to grow steadily over the year due to greater demand in permanent recruitment services and a rise in client-paid net fees,” says Allday. The industry exhibits a low level of market concentration, with notable operators including Chandler Macleod Group Limited, Hays Specialist Recruitment (Australia) Pty Limited, Manpower Services (Australia) Pty Limited and Randstad Pty Limited.
As the Australian economy continues to stabilise over the five years through 2018-19, industry revenue is forecast to increase. This growth will be driven by increased economic activity, a strengthening labour market and the provision of a wider range of online employment placement services. Greater external competition from online business networking sites, such as LinkedIn, is likely to have a small negative effect on the industry, as incumbent firms develop complementary services and other additional recruitment services and processes.
For more information, visit IBISWorld’s Employment Placement and Recruitment Services report in Australia industry page.
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IBISWorld industry Report Key Topics
This industry includes personnel search, selection, referral and placement for permanent work positions. Services may be supplied to the potential employer or the prospective employee. For the employer, services can involve all aspects of the recruitment process from the formulation of job descriptions to screening and testing applicants and investigating references. Services to the employee include job-search assistance and training.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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