The industry will benefit from continued improvements in the Canadian labour market
New York, NY (PRWEB) March 12, 2015
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 remained high during the early part of the five-year period to 2015, resulting in several initial years of revenue decline. According to IBISWorld Industry Analyst Nick Petrillo, “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.” In 2012, however, industry revenue grew in response to declining unemployment, increased corporate profit and continual growth in the number of businesses in the Canadian economy. Industry revenue has since improved over the five years to 2015. Industry revenue is expected to improve in 2015.
Over the past five years, the nature of the industry's services has evolved through the continued use of online resources and improvements to technology. 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,” says Petrillo. 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.
During the next five years, industry operators are anticipated to benefit from continued improvements in the Canadian labour market. The unemployment rate is forecast to steadily decline and corporate profit is expected to increase through 2020, providing clients with additional cash to outsource hiring and recruiting activities to the industry's agencies. As a result, IBISWorld anticipates industry revenue to increase over the five years to 2020.
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 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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