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Employment Placement and Recruitment Services in Australia Industry Market Research Report Now Updated by IBISWorld
  • USA - English


News provided by

IBISWorld

Nov 25, 2014, 09:00 ET

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IBISWorld Market Research
IBISWorld Market Research

Industry growth will be driven by increased economic activity, a strengthening labour market and a wider range of online employment placement services

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Melbourne, Australia (PRWEB) November 25, 2014 -- Australia bypassed the worst of the global financial crisis with regard to net job losses and income levels. Therefore, the effect of the crisis in subsequent years on the Australian Employment Placement and Recruitment Services industry was mild compared with similar industries in other countries. Unemployment rose in 2009-10 in Australia, a trend that quickly reversed in the following year, with demand for employment placement services rebounding strongly. IBISWorld expects industry revenue to increase at an annualised 1.5% over the five years through 2014-15, to reach $11.4 billion due to general growth across Australia's total labour force. According to IBISWorld industry analyst Alen Allday, “following a large revenue decline in 2009-10 due to the global financial crisis, the industry returned to growth in the following two years due to lower unemployment.” Industry revenue declined in 2012-13 and 2013-14 as higher unemployment levels reduced industry demand. Industry revenue is forecast to grow by 1.3% in 2014-15, as lower unemployment and a growing labour force contribute to industry demand.

Industry risks remain, however. If the unemployment rate fails to decline by the end of 2014-15, industry revenue could suffer due to lower demand. Furthermore, with some uncertainty among global clients overseas and mixed business confidence and economic conditions in the United States, Europe and China, the Employment Placement and Recruitment Services industry may face lower national and international demand for full-time and part-time recruitment services, as well as declines in client-paid net fees. As the Australian economy stabilises over the five years through 2019-20, industry revenue is forecast to increase. “This growth will be driven by increased economic and employment activity, a strengthening labour market in most years, and the provision of a wider range of online employment placement services,” says Allday. Greater external competition from online business networking sites, such as LinkedIn, is likely to have a small negative effect on the industry, as incumbent firms develop complementary and other additional recruitment services and processes.

The top four operators in the Employment Placement and Recruitment Services industry account for a small share of total industry revenue in 2014-15, which indicates a low level of market share concentration. Industry concentration has remained stable over the past five years, as the number of firms entering the industry has been offset by organic growth and acquisitions by major players. However, industry concentration is expected to increase over the next five years, as the larger companies become more dominant and increase their market shares. Along with several large companies, there are many small and medium-size firms in the industry, which tend to specialise in niche areas and often operate in particular geographic regions.

For more information, visit IBISWorld’s Employment Placement and Recruitment Services industry in Australia report page.

The industry includes firms that provide personnel search, selection, referral and placement services, to fill permanent work positions. Services may be supplied by industry firms to the potential employer or the prospective employee. For the employer, services can involve all aspects of the recruitment process from the formulation of job descriptions to screening and testing applicants and investigating references. Services to the employee include job-search assistance and training.

Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau

IBISWorld industry Report Key Topics

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios

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.

Gavin Smith, IBISWorld, http://www.ibisworld.com, +61 396553838, [email protected]

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