Global HR & Recruitment Services - Market Research Report (2014-2029)
New York, United States
Last Updated: January 2024
L6741-GLRevenue
$893.9bn
Past 5-Year Growth
Profit
$XX.Xbn
Employees
11m
Businesses
1m
Wages
$XXX.Xbn
Global HR & Recruitment Services industry analysis
HR and recruitment companies rely on a businesses' desire to outsource their recruitment process and human resource management activities. Regulation, especially for temporary employees, can hamstring providers, as this makes it more difficult to operate. More liberal labor laws in developed nations have been essential to HR and recruitment companies' growth. Large companies are now focusing on emerging markets that will undergo the same process in the future. COVID-19 temporarily put a halt to positive momentum, as businesses seeking to cut costs were unwilling to hire and minimized their HR programs. However, as the economy normalized and labor markets strengthened, HR and recruitment companies have benefited. As a result, revenue is forecast to increase at a CAGR of 1.9% to $893.9 billion over the five years to 2024, including 2.9% during the current year.<br /><br />HR and recruitment providers rely on corporate profit and a low employment rate, which are bastions of strong economic growth. When corporate profit is high, businesses are more likely to reinvest those funds and expand their workforce, using HR and recruitment companies to do so. Businesses performing well will want to keep their employees focused on core functions instead of hiring. A low unemployment rate tightens the labor market and increases competition between businesses for workers. This benefits HR and recruitment companies, as finding the right employee is more difficult and time-consuming. Businesses will outsource these tasks instead of completing them themselves, to the benefit of HR and recruitment companies.<br /><br />HR and recruitment companies' growth will remain stable in the coming years. Economic expansion in the wake of the pandemic will keep the labor market tight while corporate profit will continue to swell. This will make outsourcing HR and hiring tasks to HR and recruitment providers more attractive. Consequently, revenue is expected to expand at a CAGR of 3.8% to $1.1 trillion over the five years to 2029, while profit margins will remain more or less unchanged as competition grows.
Trends and Insights
- HR and recruitment companies’ progress was halted by COVID-19. A weak economy made businesses cut costs, limiting demand. However, this quickly reversed as the pandemic abated and the global economy returned to growth.
- Temporary employment services generate most revenue for HR and recruitment companies. This work is outsourced to providers because of their temporary basis.
- Business locations follow economic development patterns. More developed nations have an increased need for employment services.
- Price competition is high. Many small companies offer indistinguishable services, which makes price a sticking point for clients.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 1.9 % over the past five years, to reach an estimated $893.9bn in 2024.
Trends and Insights
COVID-19 evaporated revenue, albeit temporarily
- HR and recruitment companies rely on a strong labor market to generate revenue, since businesses will be more willing to spend money on outsourced services when the economy is humming, and they're seeking to expand their labor force.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
A tight labor market will boost revenue
- HR and recruitment companies benefit from a tight labor market. Unemployment will continue fall in the coming years. When companies increase their hiring, they will contract with providers to fill their openings as job turnover grows.
Biggest companies in the Global HR & Recruitment Services
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
Randstad NV | 35,141.6 | N/A | N/A | |
The Adecco Group | 27,953.5 | N/A | N/A | |
ManpowerGroup Inc. | 20,765.5 | N/A | N/A |
To view the market share and analysis for all 4 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Temporary placement, Permanent staffing and Managed services programme. Temporary placement is the largest segment of the Global HR & Recruitment Services.
Trends and Insights
Temporary employment is the backbone for providers
- HR and recruitment companies generate more than half of their revenue from temporary employment services. Many companies outsource temporary job openings to providers.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Global Public Relations Agencies
- Global Management Consultants
Complementors
- Global Accounting Services
International industries
- Human Resources & Benefits Administration in the US
- Office Staffing & Temp Agencies in the US
- Professional Employer Organizations in the US
- Online Recruitment Sites in the US
- Business Process Outsourcing Services in the US
Table of Contents
About this industry
Industry definition
Companies in the Global HR and Recruitment Services industry provide outsourced human resource and employment placement services. These services include selecting and placing permanent and temporary staff, employee leasing, listing employment vacancies and outsourcing management of personnel-related administrative functions, such as payroll and employee benefit administration.
What's included in this industry?
Employment agencies or registriesEmployment referral agencies or registriesPermanent placement Temporary placement Online job and resume listingCompanies
Randstad NVThe Adecco GroupManpowerGroup Inc.Purchase this report to view all 4 major companies in this industry.
Related Terms
OUTPLACEMENTLABOR MARKET LIBERALIZATIONRPOBRICATTRITION RATEPerformance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
HR and recruitment companies’ progress was halted by COVID-19. A weak economy made businesses cut costs, limiting demand. However, this quickly reversed as the pandemic abate...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Temporary employment services generate most revenue for HR and recruitment companies. This work is outsourced to providers because of their temporary basis.
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Business locations follow economic development patterns. More developed nations have an increased need for employment services.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Business Locations Charts
- Share of global output by region in 2024
- Share of population compared to output in each region in 2024
- Data tables
- Share of global output by region in 2024
- Detailed analysis
- Geographic spread of the industry across Global, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Price competition is high. Many small companies offer indistinguishable services, which makes price a sticking point for clients.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
HR and recruitment companies operate in a fragmented landscape. Many players are small- and medium-sized companies that operate in one local area or industry.
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Randstad NV's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of The Adecco Group's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of ManpowerGroup Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for one additional company
Detailed analysis
- Description and key data for Randstad NV, and factors influencing its performance in the industry
- Description and key data for The Adecco Group, and factors influencing its performance in the industry
- Description and key data for ManpowerGroup Inc., and factors influencing its performance in the industry
- Description, key data and performance trends for one additional company
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Regulations can vary greatly between countries. Japan and the European Union have strict rules, while others have very few laws regarding HR and recruitment companies.
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Wages comprise a strong majority of revenue. Most tasks can’t be automated, so providers must employ skilled and knowledgeable employees.
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources globally include:
- United Nations Comtrade
- Organization for Economic Cooperation & Development
- World Bank
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
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. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Global HR & Recruitment Services industry in Global in 2024?
The market size of the Global HR & Recruitment Services industry in Global is $893.9bn in 2024.
How many businesses are there in the Global HR & Recruitment Services industry in 2024?
There are 1m businesses in the Global HR & Recruitment Services industry in Global, which has grown at a CAGR of 5.2 % between 2019 and 2024.
Has the Global HR & Recruitment Services industry in Global grown or declined over the past 5 years?
The market size of the Global HR & Recruitment Services industry in Global has been growing at a CAGR of 1.9 % between 2019 and 2024.
What is the forecast growth of the Global HR & Recruitment Services industry in Global over the next 5 years?
Over the next five years, the Global HR & Recruitment Services industry in Global is expected to grow.
What are the biggest companies in the Global HR & Recruitment Services market in Global?
The biggest companies operating in the Global HR & Recruitment Services market in Global are Randstad NV, The Adecco Group and ManpowerGroup Inc.
What does the Global HR & Recruitment Services in Global include?
Employment agencies or registries and Employment referral agencies or registries are part of the Global HR & Recruitment Services industry.
Which companies have the highest market share in the Global HR & Recruitment Services in Global?
The company holding the most market share in Global is Randstad NV.
How competitive is the Global HR & Recruitment Services industry in Global?
The level of competition is high and increasing in the Global HR & Recruitment Services industry in Global.
