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Human Resources Provision in Europe - Market Size, Industry Analysis, Trends and Forecasts (2025-2030)

EU-N783 October 2025 Spotlight Report

Revenue

€26.2bn

2020-2025 0.4 %
2025-2030 X.X %

Employees

1m

2020-2025 5.5 %
2025-2030 X.X %

Businesses

27,992

2020-2025 7.2 %
2025-2030 X.X %

Wages

€XX.Xbn

2020-2025 X.X %
2025-2030 X.X %

Human Resources Provision in Europe industry analysis

Revenue in the HR Provision industry is anticipated to dip at a compound annual rate of 0.4% over the five years through 2025 to €26.2 billion. The industry has faced turbulent economic conditions over recent years, which have slowed company spending across Europe and cut space in businesses’ budgets for HR services. Inflation throughout Europe in recent years has also seen businesses cut their spending on outsourcing HR services, while demand from the public sector has suffered in the face of governments cutting their budgets. Some HR providers have found opportunities in helping companies negotiate cuts to their workforces due to economic slowdowns across many European countries. Skill shortages are significantly expanding demand for HR services as businesses face growing challenges in finding, retaining and developing qualified talent. As a result, HR providers are shifting their focus toward reskilling and upskilling existing employees, enabling organisations to fill critical skill gaps internally rather than relying solely on external recruitment. Revenue is expected to grow by 2.2% in 2025.

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Industry Statistics and Trends

Human Resources Provision in Europe key trends

Economic uncertainty drives companies to restructure their workforces.

 

Many companies making redundancies, particularly in the tech sector, have relied on outsourcing HR services to plan and strategise for their future workforce.

HR software shakes up the markets.

 

Intelligent HR is on the rise, which will see artificial intelligence enhance company decision-making, streamline workplace operations and improve the employee experience.

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Human Resources Provision in Europe

Industry Revenue

Total value and annual change from 2012-2030. Includes 5-year outlook.

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Human Resources Provision in Europe market size (2020-2025)

Industry revenue has declined at a CAGR of 0.4 % over the past five years, to reach an estimated €26.2bn in 2025.

Trends and Insights

Companies seek advice on cutting their workforce and their strategy towards employees

  • Surging inflation in the two years through 2024 prompted an economic slowdown across Europe, boosting the number of companies restructuring and making redundancies.

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Human Resources Provision in Europe outlook (2025-2030)

Market size is projected to grow over the next five years.

Artificial intelligence transforms HR services across Europe

  • AI will continue to pose a threat to HR companies over the coming years. HR software developers are a growing threat to demand for specialised HR providers, as HR systems make it easier for companies to control their HR from inhouse without having to spending significant sums. This will limit growth and cut into profitability.

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Revenue

€26.2bn

2020-2025 0.4 %
2025-2030 X.X %

Employees

1m

2020-2025 5.5 %
2025-2030 X.X %

Wages

€XX.Xbn

2020-2025 X.X %
2025-2030 X.X %

European Leaders & Laggards

Europe Job Growth CAGR: 5.5 % *
  • Job Growth

Top 5 Countries

    Bottom 5 Countries

      * CAGR values are for the years 2020-2025.

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      Biggest companies in the Human Resources Provision in Europe

      Company
      Market Share (%)
      2025
      Revenue (€m)
      2025
      Profit (€m)
      2025
      Profit Margin (%)
      2025
      Automatic Data Processing Inc
      18,535.5
      5,012.5
      27.0
      Deloitte Touche Tohmatsu Ltd
      66,281.5
      8,982.4
      13.6
      Accenture plc
      64,146.9
      9,378.6
      14.6

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      Human Resources Provision in Europe

      Products & Services Segmentation

      Industry revenue broken down by key product and services lines.

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      Top Questions Answered in this Report

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      What is the market size of the Human Resources Provision industry in Europe in 2025?

      The market size of the Human Resources Provision industry in Europe is €26.2bn in 2025.

      How many businesses are there in the Human Resources Provision industry in Europe in 2025?

      There are 27,992 businesses in the Human Resources Provision industry in Europe, which has grown at a CAGR of 7.2 % between 2020 and 2025.

      Has the Human Resources Provision industry in Europe grown or declined over the past 5 years?

      The market size of the Human Resources Provision industry in Europe has been declining at a CAGR of 0.4 % between 2020 and 2025.

      What is the forecast growth of the Human Resources Provision industry in Europe over the next 5 years?

      Over the next five years, the Human Resources Provision industry in Europe is expected to grow.

      What does the Human Resources Provision industry in Europe include?

      Payroll services and HR consultancy services are part of the Human Resources Provision industry in Europe.

      Which countries have the most businesses in the Human Resources Provision industry in Europe?

      The European country with the most businesses in the Human Resources Provision industry is United Kingdom.

      How competitive is the Human Resources Provision industry in Europe?

      The level of competition is high and increasing in the Human Resources Provision industry in Europe.

      Related Industries

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      Table of Contents

      About this industry

      Industry definition

      Human resources providers manage resources relating to employees. They complete tasks and duties for and provide information to client businesses relating to employees, payroll, employee tax contributions and other issues.

      Related Terms

      HR CONSULTANCY PASSPORTING LABOUR RELATIONS

      What's included in this industry?

      Payroll servicesHR consultancy servicesHealth and safety trainingEmployee training programmesEmployee relations guidance

      Companies

      Automatic Data Processing IncDeloitte Touche Tohmatsu LtdAccenture plc

      Industry Code

      ISIC 2006

      783 - Other human resources provision in Europe

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      Performance

      Key Takeaways

      Companies seek advice on cutting their workforce and their strategy towards employees

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      Revenue Highlights

      Trends
      • Revenue
      • 2025 Revenue Growth
      • Revenue Volatility

      Employment Highlights

      Trends
      • Employees
      • Employees per Business
      • Revenue per Employee

      Business Highlights

      Trends
      • Businesses
      • Employees per Business
      • Revenue per Business

      Profit Highlights

      Trends
      • Total Profit
      • Profit Margin
      • Profit per Business

      Current Performance

      Charts
      • Revenue in the Human Resources Provision in Europe industry (2012 -2030)
      • Employees in the Human Resources Provision in Europe industry (2012 -2030)
      • Business in the Human Resources Provision in Europe industry (2012 -2030)
      • Profit in the Human Resources Provision in Europe industry (2012 -2030)
      Analysis

      What's driving current industry performance in the Human Resources Provision in Europe industry?


      Outlook

      Analysis

      What's driving the Human Resources Provision in Europe industry outlook?


      Volatility

      Analysis

      What influences volatility in the Human Resources Provision in Europe industry?

      Charts
      • Industry Volatility vs. Revenue Growth Matrix

      Life Cycle

      Analysis

      What determines the industry life cycle stage in the Human Resources Provision in Europe industry?

      Charts
      • Industry Life Cycle Matrix

      Products and Markets

      Highlights

      Trends
      • Largest Market
      • Product Innovation

      Key Takeaways

      More businesses seek advice on shaping their work culture and benefit schemes. Workplace benefits have become an important aspect of employer contracts and companies are relying on HR professionals to create career progression pathways.

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      Products and Services

      Charts
      • Products and Services Segmentation
      Analysis

      How are the Human Resources Provision in Europe industry's products and services performing?

      Analysis

      What are innovations in the Human Resources Provision in Europe industry's products and services?


      Major Markets

      Charts
      • Major Market Segmentation
      Analysis

      What influences demand in the Human Resources Provision in Europe industry?


      International Trade

      Highlights

      • Total Imports into Europe
      • Total Exports into Europe
      Heat maps
      • Industry Concentration of Imports by Country
      • Industry Concentration of Exports by Country
      Data Tables

      Value and annual change (%) included

      • Number of Imports and Exports by European Country (2025)

      Geographic Breakdown

      Business Locations

      Heat maps
      • Share of Total Industry Revenue by Region (2025)
      • Share of Total Industry Enterprises by Region (2025)
      • Share of Total Industry Employment by Region (2025)
      • Share of Total Industry Wages by Region (2025)

      Industry Geographic Breakdown

      Data Tables

      Values and annual change provided for 37 European countries:

      • Revenue (2025)
      • IVA (2025)
      • Enterprises (2025)
      • Employment (2025)
      • Exports (2025)
      • Imports (2025)

      Competitive Forces

      Highlights

      Trends
      • Concentration
      • Competition
      • Barriers to Entry
      • Substitutes
      • Buyer Power
      • Supplier Power

      Key Takeaways

      HR companies expand by adopting advanced software. Larger HR companies are using technology to satisfy clients both online and in person. Greater adoption of HR software has expanded the global reach of HR companies.

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      Supply Chain

      Charts

      Buyer and supply industries

      Companies

      Market Share

      Charts
      • Industry Market Share by Company (2020-2025)

      Companies

      Data Tables

      Top 10 companies by market share:

      • Market share (2025)
      • Revenue (2025)
      • Profit (2025)
      • Profit Margin (2025)

      Data Tables
      • Countries of operation for Automatic Data Processing Inc
      • Countries of operation for Deloitte Touche Tohmatsu Ltd
      • Countries of operation for Accenture plc
      • Countries of operation for Ernst & Young Global Ltd
      • Countries of operation for Willis Towers Watson plc
      • Countries of operation for Marsh & McLennan Companies Inc
      • Countries of operation for Bain & Company Inc
      • Countries of operation for Aon plc
      • Countries of operation for McKinsey & Company Inc
      • Countries of operation for Korn Ferry

      External Environment

      Highlights

      Trends
      • Regulation & Policy
      • Assistance

      Key Takeaways

      HR companies need to follow strict regulations. There are lots of regulations regarding recruitment, employment conditions, work contracts and firing processes. HR providers need to know how to carry out fair hiring, disciplinary and dismissal processes.

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      External Drivers

      Analysis

      What demographic and macroeconomic factors impact the Human Resources Provision in Europe industry?

      Financial Benchmarks

      Highlights

      Trends
      • Profit Margin
      • Average Wage
      • Largest Cost

      Key Takeaways

      HR providers rely on skilled staff. They need qualified and experienced workers, especially for consultancy, which props up spending on wages. That being said, wage costs are edging downwards in line with falling demand for HR consultancy.

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      Cost Structure

      Charts
      • Share of Economy vs. Investment Matrix
      • Industry Cost Structure Benchmarks:
        • Marketing
        • Depreciation
        • Profit
        • Purchases
        • Wages
        • Rent
        • Utilities
        • Other
      Analysis

      What trends impact cost in the Human Resources Provision in Europe industry?


      Key Ratios

      Data tables
      • IVA/Revenue (2015-2030)
      • Imports/Demand (2015-2030)
      • Exports/Revenue (2015-2030)
      • Revenue per Employee (2015-2030)
      • Wages/Revenue (2015-2030)
      • Employees per Establishment (2015-2030)
      • Average Wage (2015-2030)

      Country Benchmarks

      European Leaders & Laggards

      Data Tables

      Top and bottom five countries listed for each:

      • Revenue Growth (2025)
      • Business Growth (2025)
      • Job Growth (2025)

      European Country Performance

      Data Tables

      Rankings available for 37 countries. Statistics ranked include:

      • IVA/Revenue (2025)
      • Imports/Demand (2025)
      • Exports/Revenue (2025)
      • Revenue per Employee (2025)
      • Wages/Revenue (2025)
      • Employees per Establishment (2025)
      • Average Wage (2025)

      Structural Comparison

      Data Tables

      Trends in 37 countries benchmarked against trends in Europe

      • Concentration
      • Competition
      • Barriers to Entry
      • Buyer Power
      • Supplier Power
      • Volatility
      • Capital Intensity
      • Innovation
      • Life Cycle

      Key Statistics

      Industry Data

      Data Tables

      Including values and annual change:

      • Revenue (2015-2030)
      • IVA (2015-2030)
      • Establishments (2015-2030)
      • Enterprises (2015-2030)
      • Employment (2015-2030)
      • Exports (2015-2030)
      • Imports (2015-2030)
      • Wages (2015-2030)

      Methodology

      Where does IBISWorld source its data?

      IBISWorld is a world-leading provider of business information, with reports on 5,000+ industries in Australia, New Zealand, North America, Europe and China. Our expert industry analysts start with official, verified and publicly available sources of data to build an accurate picture of each industry.

      Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and IBISWorld's proprietary database of statistics and analysis to provide balanced, independent and accurate insights. 

      IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools.

      To learn more about specific data sources used by IBISWorld's analysts globally, including how industry data forecasts are produced, visit our Help Center.