Los Angeles, CA (PRWEB) July 01, 2013
The Employment and Recruiting Agencies industry in Canada provides a wide-range of services to clients. Agencies provide permanent placement, temporary staffing and have begun to offer expanded human resources functions. The industry is closely tied to broader economic performance and the unemployment rate. Unfortunately for industry operators, economic conditions declined and the unemployment rate skyrocketed following the global financial crisis. Clients slashed payrolls in an effort to remain profitable, resulting in an increasing number of potential applicants, but few positions to fill. Consequently, industry revenue declined in 2009. According to IBISWorld Industry analyst Austen Sherman, “while the industry has showed signs of recovery more recently, its performance was not able to overcome the effects of the recession”. As a result, IBISWorld estimates industry revenue has fallen at an annualized rate of 2.2% to $2.5 billion during the past five years, including growth of 1.5% in 2013.
During the past five years, the industry has seen an increased use of technology. The development of professional networking and job sites, such as LinkedIn and Monster, has provided applicants and employers with great access to one another. “The most successful industry operators have learned to use these devices to their advantage”, says Sherman. In addition, industry operators are increasingly using software that helps screen resumes and cover letters for key words and specific qualifications that has increased the quality of placements and improved industry efficiency. During the next five years, industry operators are anticipated to benefit from an improved labour market. The unemployment rate is forecast to decline each year beginning in 2014. Furthermore, corporate profit is expected to increase through 2018, providing clients with additional cash to outsource hiring and recruiting activities. As a result, IBISWorld anticipates industry revenue to increase during the five years through 2018.
The Employment and Recruiting Agencies industry in Canada has a low level of market share concentration. In 2013, IBISWorld estimates the majority of operators keep less than 10 employees. These small operators tend to focus on a particular province, or even a particular industry within a province. During the past five years, it is estimated that industry concentration has risen slightly as a result of acquisition activity. For example, major operator Randstad acquired SFN Group in 2011, while Adecco Group acquired MPS Group and Drake Beam Morin in 2009 and 2011. This trend is expected to continue, but at a slower rate than the past five years; poor economic conditions resulted in higher than normal acquisition activity. Nevertheless, the industry's low level of concentration is expected to remain.
For more information, visit IBISWorld’s Employment and Recruiting Agencies in Canada industry report page.
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IBISWorld industry Report Key Topics
Operators in this industry primarily engage in listing employment vacancies and selecting, referring and placing application in permanent or temporary employment positions. The individuals placed into these new positions are not employees of the placement agencies.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US and Canadian industry. 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.