Worldwide recruiting services market to grow at 8.7% a year
2003 showed signs of a rebound in many areas of recruiting and staffing, with growth shown in both the United States and worldwide. Early 2004 quarterly results are demonstrating that this growth will continue, IDC reveals. IDC forecasts worldwide recruiting and staffing service spending will increase to $94 bln by 2008, with a compound five-year annual growth rate (CAGR) of 8.7%. The US market will continue to lead in this area and will increase to $40 bln in 2008. The worldwide market for recruiting and staffing services in 2003 increased 5.6% to $62 bln. The United States led this growth with recruiting and staffing services revenue increasing 6.1% to $26 bln.
2003 growth across the different segments of recruiting and staffing services varied, but the variability proved to underscore the overall improvement in the economy and employment picture. Recruiting-related segments experienced strong growth but outplacement services grew at a much slower pace, indicating that the market encountered fewer large-scale layoffs. The single biggest obstacle for the end-to-end hiring solutions providers will continue to be the sheer number of vendors in the space and the buyer confusion that surrounds a crowded market. Suppliers are advised to take advantage of their revenue growth in recruiting-related transactional services to invest in the development and acquisition of services that prove to distinguish them from the competition in the area of transformational HR including workforce performance management.