Staffing and Recruitment Market Analysis Report, Revenue & Forecast-2030

The staffing and recruitment market size was valued at US$ 683.22 billion in 2022 and is expected to reach US$ 1778.29 billion by 2030. The staffing and recruitment market is estimated to record a CAGR of 12.7% from 2022 to 2030.

Analyst Perspective:

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 & 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 projects are creating job vacancies in the manufacturing and construction sectors and boosting the staffing & recruitment market across the globe.

Furthermore, the growing demand for sustainable products among consumers increases research activities to develop eco-friendly solutions, which is expected to create new job opportunities in various industries. The research and development (R&D) sector requires skilled professionals to recruit a suitable candidate for the research position. The rise in technological advancement owing to the increased adoption of new technologies and rapid digitalization is also expected to create job opportunities in various industries in the coming years, thereby augmenting the staffing and recruitment market growth.

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 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.

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Staffing and Recruitment Market: Strategic Insights

Market Size Value in	US$ 683.22 billion in 2022
Market Size Value by	US$ 1778.29 billion by 2030
Growth rate	CAGR of 12.7% from 2022 to 2030
Forecast Period	2022-2030
Base Year	2022

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Staffing and Recruitment Market Driver:

Huge Job Opportunities in BFSI and IT Sectors Drives Staffing and Recruitment Market Growth

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

Within the BFSI industry, technology accounts for about a third of all new jobs, owing to increasing demand for development, IT management, and IT analyst roles. According to Project Management Institute, Inc., vast vacancy for project management positions is expected to open in the coming years, and nearly 2.3 million employees are needed to fill all of the project management-oriented positions each year. Companies are focusing on hiring problem solvers and relationship builders for delivering strategic value by remain competitive in the market, which require staffing and recruitment professionals to fulfil these positions. Similarly, according to State of European Tech report, in 2021, tech companies in Europe are invested US$121 billion to fulfil positions of project professionals in the IT sector. The rapid digitalization is also one of biggest drivers increasing demand for project professionals in Europe. Such an increase in job opportunities in the information technology sectors is propelling the need for staffing & recruitment solutions.

Staffing and Recruitment Market Report Segmentation and Scope:

The staffing and recruitment market is segmented based on staffing type, recruitment channel, end user and geography. Based on staffing type, the staffing and recruitment market is further bifurcated into permanent and temporary. Based on recruitment channel, the staffing and recruitment market is categorized into online, hybrid, and offline, By end user, the staffing and recruitment market is segmented into oil & gas, BFSI, IT & telecom, healthcare, retail & e-commerce, and others. By geography, the staffing and recruitment market is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

Staffing and Recruitment Market Segmental Analysis:

Based on recruitment channel, the staffing and recruitment market is segmented into online, offline, and hybrid. The online segment held the largest share in the staffing and recruitment market in 2022. The online recruitment channel offers several advantages over a traditional method of managing the recruitment process. A few advantages include wider reach, cost-effectiveness, time-saving, and increased efficiency. In the hiring and staffing process, the use of AI and automation has gained significant importance. AI has proven highly effective in screening resumes from a large pool of applicants, which has always been a major talent acquisition challenge for organizations. According to the US Chamber of Commerce, there will be more than 10 million job openings by the end of 2023, and only 5.7 million workers will be unemployed. This gives advantages to workers to negotiate for higher pay, better benefits, and conditions that create a more favorable work-life balance. Companies are already reevaluating their recruitment processes—identifying inefficiencies and opportunities for artificial intelligence (AI) and automation to make processes more attractive for both candidates and employees.

AI tools are implemented in online channels such as LinkedIn or industry-specific outlets for recruitment, candidate selection, and onboarding. These tools help recruiters to hire a bias-free process, increase efficiency, and improve employee experience. AI and automation in hiring make the process faster and more cost-effective. Furthermore, as per a blog by Innovations Group UAE, recruiters have been increasingly focusing on automating their hiring workflow in 2021. The use of digital channels for job searching is increasing in Middle Eastern countries. According to Cisco AppDynamics research in April 2023, over 12,000 consumers were surveyed in 12 countries, of which 10,000 consumers are from the UAE. The research showed that 70% of consumers use social media platforms, 35% use company websites, and 63% use job websites for employment searching. Hence, online recruitment methods have gained immense popularity in recent years, which drives the segment growth in staffing and recruitment market.

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Staffing and Recruitment Market Regional Analysis:

The North America staffing and recruitment market size was valued at US$ 2,54,120.96 million in 2022 and is projected to reach US$ 6,13,063.00 million by 2030; it is expected to register a CAGR of 11.6% from 2022 to 2030. The North America staffing and recruitment market is segmented into the US, Canada, and Mexico. The US held the largest share of the North America staffing and recruitment market in 2022. The US is the hub of manufacturing, IT, automotive, and others; thus, various firms are creating jobs in the country. For instance, 236,000 new jobs were created by American firms in March 2023, indicating a strong economy. These jobs were created due to the imposition by the Federal Reserve in 2022 in an effort to rein in inflation.

Moreover, the US government has invested in the telecommunication industry. The Bipartisan Infrastructure Law, which US President Biden signed, is a once-in-a-generation investment in the infrastructure of the US. In order to accelerate the development of Open Radio Access Networks (OPEN RAN), the telecommunication industry is strengthening its supply chains and investing US$ 1.5 billion in STEM workforce development for high-skilled, rewarding union employment. Thus, the investment in the telecommunication sector and associated government initiatives are creating several jobs that are expected to propel the growth of the recruitment and staffing market during the forecast period.

Staffing and Recruitment Market Key Player Analysis:

Adecco Group AG, ALLIANCE RECRUITMENT AGENCY, BAC Middle East, Brunel, Hays plc, Korn Ferry, Medacs Healthcare Limited, Morgan Philips Group SA, NES Fircrof, and Randstad N.V. are among the key companies operating in the staffing and recruitment market.

Staffing And Recruitment Market Recent Developments: 

Inorganic and organic strategies such as mergers and acquisitions are highly adopted by companies in the staffing and recruitment market. A few recent key staffing and recruitment market developments are listed below:

• In August 2023, Korn Ferry launched Korn Ferry Nimble Recruit, which was used for hiring. Korn Ferry Nimble Recruit is a one-stop, data-driven recruitment technology that offers a scalable solution for hiring. It is a cost-effective and agile technology that provides a high-touch experience in early career and professional roles.
• In January 2022, Medacs Healthcare and Global Medics announced their partnership with Onwards, an online community designed to offer education and peer support to junior doctors and healthcare professionals in Australia. The collaboration is aimed at providing ongoing career support and empowering the next generation of healthcare professionals to deliver top-notch patient care.
• In February 2023, NES Fircroft acquired Evolve Scientific Recruitment, a well-known player in Scientific and Technical Recruitment across APAC. The acquisition is expected to strengthen NES Fircroft's position as a partner of choice for both scientific and technical employment solutions across the region.