Global HR & Recruitment Services Industry Market Research Report Now Available from IBISWorld

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Large players are focusing their efforts on emerging markets, as these regions follow suit in the liberalization of labor laws; however, the governments of some countries, particularly in the European Union, are currently at risk of default, which would ultimately diminish the demand for labor, and with it, the demand for HR and recruitment services. For these reasons, industry research firm IBISWorld has updated its report on the Global HR & Recruitment Services industry.

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Slow improvement in the labor markets of developed nations has boosted demand.

Over the five years to 2013, revenue for the Global HR and Recruitment Services industry is expected to decline at an annualized rate of 1.7% to $589.5 billion. The industry relies on organizations outsourcing recruitment processes and human resource (HR) management activities. Industry performance is largely dependent on economic conditions in major markets and the flow-on effects these have on the demand for labor around the world. Labor market regulation is also important, particularly regulation relating to temporary employees. While the liberalization of labor laws in developed nations has historically been a key to the industry's growth, large players are now focusing efforts on emerging markets, says IBISWorld industry analyst Kevin Culbert. Growth in these regions is expanding as emerging markets follow suit in the liberalization of labor laws.

Industry revenue plunged 23.0% in 2009, as much of the world endured recession and rising unemployment. This drastic decline caused profit margins to fall to about 1.5% during the year. Although improvement in developed nations' labor markets boosted industry revenue in 2010 and 2011, the rising value of the US dollar drowned any marginal improvements that occurred in 2012. Furthermore, Europe's continuing debt crisis weighed on the industry's performance, in spite of growth in emerging markets. Continued growth in emerging markets and improvements in the labor markets of developed nations are expected to cause industry revenue to increase in 2013 and beyond, continues Culbert. IBISWorld estimates that revenue will grow 4.4% in 2013. The industry relies on a high-volume, low-margin business model because the majority of industry revenue flows through to temporary workers as wages. The Global HR and Recruitment Services industry is highly fragmented, with a large number of small and medium-size firms operating in niche geographies and industries. IBISWorld estimates that in 2013, the top players are Adecco SA, Randstad Holding NV and Manpower Inc. The industry can be broken down into several segments. While the largest players tend to be global catchall operators, most cater to niche labor markets. One of the largest niche operators is Robert Half International, which caters to accounting and finance professions. Many players also cater specifically to one country, due to the difficulty of breaking into a new market with differing cultural norms and labor market laws. Temp Holdings, for example, is the largest player in Japan, but it has a very small presence outside of the country.

During the five years to 2018, the industry will benefit from improvements in developed nations' labor markets and the continued growth of emerging markets. However, the governments of some countries, particularly in the European Union, are currently at risk of default. The default of a major government in the years to come would ultimately diminish the demand for labor, and with it, the demand for HR and recruitment services. For more information, visit IBISWorld’s Global HR and Recruitment Services industry report page.

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IBISWorld industry Report Key Topics

Companies in this industry provide outsourced human resource (HR) and employment placement services. These services can include selecting and placing permanent and temporary staff, employee leasing, listing employment vacancies, and outsourcing management of personnel-related administrative functions, such as payroll and employee benefit administration.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique industry information and analysis. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
IBISWorld
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