Melbourne, Australia (PRWEB) April 08, 2014
Prior to the global financial crisis, the Temporary Staff Services industry benefited from an outsourcing trend, a strong economy with low unemployment and a strong appetite for labour from the Mining division amid booming commodities prices. According to IBISWorld industry analyst Alen Allday, “while the industry was flat in 2008-09, it suffered in 2009-10 due to rising unemployment and weaker demand for new temporary labour positions.” However, the Australian economy weathered the global downturn relatively well as growth in the housing sector stabilised and mining output strongly increased. Many other sectors within the economy returned to growth, fuelling demand for new staff and industry services. Industry revenue returned to growth in 2010-11 as economic growth drove demand for temporary staff. A weaker Mining division and economic uncertainty in 2012-13 and 2013-14 led to industry revenue declines for these years.
In the five years through 2013-14, industry revenue is expected to increase at an annualised 0.5% to $18.5 billion. This includes a forecast decline of 3.5% in 2013-14. “The low revenue growth of the past five years has been accompanied by low profit margins and industry employment declines,” says Allday. However, enterprise numbers have increased at due to the low barriers to entry. The industry exhibits a low level of market share concentration, with Skilled Group Limited the only player holding a significant share of industry revenue.
Employment outsourcing has become well established in Australia over the past two decades. As a result, temporary staff services are expected to grow only modestly over the next five years. This is also due to the mature nature of the industry. The mining and energy sectors are expected to remain key growth drivers for the industry, despite weaker global growth hindering commodity demand and causing prices to decline. Further, with the Mining division being a relatively small employing sector, its growth will only have a limited effect on the Temporary Staff Services industry.
For more information, visit IBISWorld’s Temporary Staff Services report in Australia industry page.
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IBISWorld industry Report Key Topics
Operators in the industry provide temporary staffing solutions to client companies on a fee or contract basis. Temporary staff services companies provide their own staff to client businesses to carry out temporary assignments. These temporary staff work under the control of the client for operational purposes at the client's work site, but remain legally employed by the provider and are paid by the provider.
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
About IBISWorld Inc.
Recognised 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 Australian 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 Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.