Report Shows Growth in Employment Services Market
In its report, Employment Services: A Global Strategic Business, Global Industry Analysts, Inc. revealed that the employment services market continues to improve amidst an erratic economic climate. The World Employment Services market is expected to expand to $35 billion within the next five years due to growing enterprise numbers, an increased need for HR services, the rise of the Internet within the market, and upward GDP trends. Developing nations continue to exhibit volatile recruitment industries as economic uncertainty creates an atmosphere of caution and selectivity in hiring choices and a reliance on temporary workers over full-time staff.
As one of the more susceptible industries to economic crisis, employment services rely heavily on a friendly employment environment. High unemployment suffered during times of economic crisis coupled with frequent mergers between small and mid-sized businesses and job-consolidations within larger companies lead to cost-cutting measures such as hiring freezes, lay-offs, and salary cuts. Employment agencies also tend to suffer as organizations bypass them in lieu of conducting less expensive direct recruiting. Furthermore, temporary workers suffer greatly since they are easier to hire and fire than permanent staff.
However, with the rise of the Internet, and social media in particular, those in the
employment services market have easy access to tools for creating job advertisements on branded websites and Internet job boards. Additionally, social networking sites, such as Facebook and LinkedIn, have created an environment of easy information gathering regarding job seekers. The Internet also allows recruitment companies to pull talent from a worldwide pool, thus improving the overall success rate of selecting the best candidate for the right job.