Staffing and Recruitment Market Outlook and Strategic Insights by 2031

The staffing and recruitment market size is expected to reach US$ 2,031.34 billion by 2031 from US$ 757.56 billion in 2023. The market is estimated to record a CAGR of 13.1% from 2023 to 2031. The rising adoption of automation and AI-driven recruitment models is likely to remain key staffing and recruitment market trends.

Staffing and Recruitment Market Analysis

The increasing number of job vacancies across the globe is boosting the adoption of staffing and recruitment solutions across various organizations. For instance, in a report published by the World Economic Forum in April 2023, over 803 companies in 45 economies are collectively employing more than 11.3 million workers in 27 industries. The data shows that an increase in employment activity is driven by various factors such as rising investment in green transition of businesses, the broader application of ESG standards, and localization of supply chains, which are creating job opportunities by improving the employment rate worldwide.

Entrepreneurs in developing countries are expanding their businesses, which will subsequently create new job opportunities across the globe. In August 2023, Intel Corporation announced its plan to build two new leading-edge chip factories at its Ocotillo campus in Chandler, Arizona. The new factories help the company to meet the growing consumer demand and provide the required capacity for Intel Foundry Services customers. The new factories will create 3,000 high-tech and high-wage jobs; 3,000 construction jobs; and support an additional 15,000 indirect jobs in the local community. The factories are expected to start its operations by 2024. Such developments and expansion are creating job vacancies in the manufacturing and construction sectors and boosting the staffing and recruitment market across the globe.

Staffing and Recruitment Market Overview

Staffing and recruitment refer to identifying and attracting candidates with the required skills, knowledge, and experience for a matching job position. Effective staffing and recruitment can help an organization build a strong and talented workforce, improve productivity, and achieve competitive advantages. The staffing and recruitment market has evolved significantly in response to dynamic workforce trends and technological advancements. Organizations today face increasing pressure to adapt quickly to changing market conditions, skill shortages, and workforce expectations, prompting a greater reliance on professional recruitment firms and staffing agencies. These firms offer tailored solutions, from temporary staffing and contract hiring to permanent placements and executive search services. The integration of digital tools, including AI-powered applicant tracking systems, predictive analytics, and cloud-based recruitment platforms, has streamlined hiring processes, reduced time-to-hire, and improved candidate quality. Additionally, the rise of remote and hybrid work models has expanded the talent pool, allowing companies to access skilled candidates regardless of geographical limitations. Industries such as IT, healthcare, BFSI, and manufacturing are particularly driving demand for specialized staffing services, given their fast-paced environments and evolving job requirements. Furthermore, the gig economy and flexible work arrangements are reshaping employment patterns, leading to a surge in demand for freelance and project-based roles. Government initiatives aimed at boosting employment and skill development, particularly in emerging markets, are also contributing to the expansion of the staffing industry. As businesses increasingly prioritize agility and cost efficiency, staffing and recruitment services are expected to play a pivotal role in workforce strategy.

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Staffing and Recruitment Market: Strategic Insights

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Staffing and Recruitment Market Drivers and Opportunities

Huge Job Opportunities in BFSI and IT Sectors to Favor Market

The BFSI and IT industries are growing at an unprecedented pace. According to World Bank data, small and medium enterprises (SMEs) play a major contributor to job creation and global economic development. It represents ~90% of businesses and over 50% of employment worldwide. SMEs also help generate income and promote innovation by providing opportunities for entrepreneurship and innovation, which increases business productivity. According to the same source, by 2030, SMEs will create approximately 600 million jobs due to government initiatives and support to expand the private sector. SMEs create 7 out of 10 jobs formal jobs in emerging markets such as Italy, Japan, India, Indonesia, and South Korea. The growth in the SME sector has made a significant impact on economic growth, which is essential for sustainable development. Thus, huge job opportunities in the BFSI and IT sectors drive the staffing and recruitment market growth.

Growing Adoption of Remote Working and Hybrid Business Model Worldwide

The COVID-19 pandemic shifted consumer preference toward the adoption of remote or hybrid work models. Millions of workers across the globe have already started working from home. Businesses have seen opportunities and resounding success while working from home. Many companies worldwide have fully adopted work from home model. According to the Pew Research Center, only 6% of employees primarily worked remotely, and it was expected to increase by 25% by the end of 2023. In 2022, 60% of workers want to work from home, which encourages enterprises to adopt a remote or hybrid business model for offering work-life balance to their employees. Remote work allows employees to access a broader and more diverse talent pool beyond geographical boundaries. Remote or hybrid work models benefited both employers and candidates. Staffing and recruitment solutions help employers to connect candidates across the globe.

The adoption of remote and hybrid working models mandates businesses to create or adopt staffing and recruitment protocols for designing job offers, recruiting appropriate candidates, and hiring & onboarding new candidates regardless of where they live. Furthermore, remote and hybrid working helps businesses to reduce overhead costs associated with traditional office space. Efficient staffing and recruitment solutions help employers to minimize the cost incurred in their hiring processes involving expenses related to advertising, administrative, and traveling.

Staffing and Recruitment Market Report Segmentation Analysis

Key segments that contributed to the derivation of the staffing and recruitment market analysis are staffing type, recruitment channel, and end user.

• Based on staffing type, the staffing and recruitment market is divided into temporary and permanent. The temporary segment held a larger market share in 2023.
• Based on recruitment channel, the staffing and recruitment market is segmented into online, offline, and hybrid. The online segment dominated the market in 2023.
• Based on end user, the staffing and recruitment market is categorized into BFSI, IT and telecom, healthcare, retail and e-commerce, and others.

Staffing and Recruitment Market Share Analysis by Geography

The staffing and recruitment market is segmented into five major regions—North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South & Central America. North America dominated the market in 2023, followed by Europe and APAC, respectively.North America is home to a few of the largest and most dynamic economies in the world, and businesses are always hiring talented employees for various job profiles. According to the American Staffing Association, while serving companies in almost every area, the staffing, recruiting, and workforce solutions sector significantly boosts the US economy. For instance, according to ManpowerGroup, as of June 2023, employers in the IT sector follow the most rigorous process to hire immense resources, and the third quarter is likely to witness an increase in hiring across US-based industries. In June 2023, ManpowerGroup estimates that only 28% of employers worldwide want to increase headcounts relative to the US, despite the fact that 39% of people working in the global IT sector anticipate significant hiring in Q3. Thus, the demand for recruitment and staffing solutions is anticipated to grow in the coming years.

Staffing and Recruitment Market Regional Insights

The regional trends and factors influencing the Staffing and Recruitment Market throughout the forecast period have been thoroughly explained by the analysts at The Insight Partners. This section also discusses Staffing and Recruitment Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Staffing and Recruitment Market Report Scope

Staffing and Recruitment Market Players Density: Understanding Its Impact on Business Dynamics

The Staffing and Recruitment Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the Staffing and Recruitment Market are:

1. Adecco Group AG
2. ALLIANCE RECRUITMENT AGENCY
3. BAC Middle East
4. Brunel
5. Hays plc
6. Korn Ferry

Disclaimer: The companies listed above are not ranked in any particular order.

Staffing and Recruitment Market News and Recent Developments

The staffing and recruitment market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the staffing and recruitment market are listed below:

• In December 2022, Hays, a global leader in workforce solutions and specialist recruitment, announced the opening of a new office in Bangkok, Thailand. This expansion aims to strengthen Hays' presence and capacity in Asia and enhance partnerships in its seven operating markets, including China, Hong Kong SAR, Japan, Malaysia, Singapore, India, and Thailand. The decision to expand into Thailand is part of Hays' strategy to further grow its footprint in Asia, taking into account the country’s proximity to Malaysia and the significant number of international and domestic companies with investments and operations in various industries.(Source: Hays, Press Release)
• In April 2023, The American Association for Physician Leadership (AAPL) formed a partnership with Korn Ferry, an organizational consulting firm. This partnership will leverage the experience of both organizations in leadership development and training to provide professional growth, leadership education, and management training for physicians and healthcare leaders. This collaboration aims to enhance patient outcomes, workforce wellness, and healthcare delivery.(Source: Korn Ferry, Press Release)

Staffing and Recruitment Market Report Coverage and Deliverables

The "Staffing and Recruitment Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering the areas mentioned below:

• Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Market dynamics such as drivers, restraints, and key opportunities
• Key future trends
• Detailed PEST and SWOT analysis
• Global and regional market analysis covering key market trends, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
• Detailed company profiles