A decreasing unemployment rate and growing corporate profit will boost demand for industry services
New York, NY (PRWEB) June 17, 2014
The Employment and Recruiting Agencies industry provides clients with a variety of services, including permanent placement, temporary staffing and human resources functions. The financial success of the industry is closely connected to the broader economy and the unemployment rate in Canada. Economic conditions were poor and the unemployment rate skyrocketed in the years immediately following the global financial crisis, resulting in a drastic revenue decline in 2009 alone. The industry's corporate clients were forced to slash company payrolls to remain profitable, resulting in fewer hires and an overall decline in demand for industry services early on in the five years to 2014. Though the industry has begun to show signs of recovery, industry revenue has declined over the five years to 2014 as a result of the initial struggles following the recession. Economic conditions will likely continue to improve in 2014; IBISWorld estimates revenue will increase during the next five years.
Over the past five years, the industry has evolved through the continued use of online resources and improvements to technology. According to IBISWorld Industry Analyst Nick Petrillo, “the development of professional networking and job sites, such as LinkedIn and Monster, has provided applicants and employers with convenient access to each another” and in some cases, has circumvented the need for employment and recruiting agencies entirely. The most successful industry operators have learned to harness these online resources to their advantage by implementing their own online tools, resources and employment networks for individual and corporate clients. In addition, “industry operators have increasingly used software that helps screen resumes and cover letters for key words and specific qualifications, thereby increasing the quality of placements and improving industry efficiency,” says Petrillo.
The Employment and Recruiting Agencies industry has a low level of market share concentration. During the next five years, industry operators are anticipated to benefit from an improved labour market. The unemployment rate is forecast to steadily decline and corporate profit is expected to increase through 2019, providing clients with additional cash to outsource hiring and recruiting activities. As a result, IBISWorld anticipates industry revenue to increase at an average rate over the five years to 2019.
For more information, visit IBISWorld’s Employment & Recruiting Agencies in Canada industry report page.
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IBISWorld industry Report Key Topics
Operators in the Employment & Recruiting Agencies industry list employment vacancies and select, refer and place job seekers into permanent or temporary employment positions. 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
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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.