Demand for online recruitment sites will revive as businesses start hiring again.
New York, NY (PRWEB) March 01, 2014
The Online Recruitment Sites industry experienced significant growth throughout the 2000s, until the onset of the recession hit and companies put hiring on hold, hurting demand for industry services. However, the industry was quick to rebound following the recession. Industry revenue expanded 6.1% and 16.5% in 2010 and 2011, respectively, as corporate profit rose and firms reinvested in their workforces. Additionally, more Americans were willing to pay for premium subscriptions to secure new jobs. The internet has become increasingly prominent in consumers' everyday lives and, as a result, the use of online recruitment sites has continued to rise. Consequently, revenue for the Online Recruiting Services industry is projected to grow at an average annual rate of 10.5% to $2.3 billion over the five years to 2014, including growth of 6.1% in 2014. Growth has been particularly strong over the past five years due to the industry recovering from a recessionary low in 2009.
According to IBISWorld Industry Analyst Jeremy Edwards, “Despite strong revenue growth, the industry has gained only a small number of new players.” The recession hurt industry profitability and, as a result, major players purchased smaller, struggling companies. The number of industry enterprises is only expected to grow an annualized 0.8% to 2,903 over the five-year period, due to consolidation. For instance, former major player Yahoo HotJobs was acquired by Monster Worldwide for $225.0 million. Similarly, Indeed was purchased by Japan-based Recruit Co. Ltd. in October 2012.
“Over the next five years, the industry is expected to continue growing as online services become an increasingly important part of consumers' everyday lives,” says Edwards. Industry operators are expected to provide more services to clients, such as candidate assessment, and the recovery of the United States will precipitate more job listings. Rising corporate profit will cause businesses to increase the size of their workforces, and online recruitment sites will benefit from this trend. Additionally, new operators are expected to enter the industry and provide online recruitment services to niche markets such as healthcare and information technology.
For more information, visit IBISWorld’s Online Recruiting Services industry in the US industry report page.
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IBISWorld industry Report Key Topics
Operators in the Online Recruiting Services industry charge employers to list job openings. Firms also maintain databases of resumes that employers can search for a fee. Companies in this industry work entirely online and earn a portion of revenue from ad sales.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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