Employment Serives Global Market Opportunities and Strategies to 2034

This report describes and explains the employment services market and covers 2019-2024, termed the historic period, and 2024-2029, 2034F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global employment services market reached a value of nearly $1.95 trillion in 2024, having grown at a compound annual growth rate (CAGR) of 9.06% since 2019. The market is expected to grow from $1.95 trillion in 2024 to $3.29 trillion in 2029 at a rate of 10.95%. The market is then expected to grow at a CAGR of 10.65% from 2029 and reach $5.46 trillion in 2034.

Growth in the historic period resulted from expansion of the gig economy and freelance workforce, growing demand for remote and hybrid workforce, expansion of its service sectors and increasing demand for skilled and specialized labor. Factors that negatively affected growth in the historic period were skills mismatches and labor market tightness and economic downturns and recession.

Going forward, rise in start-up and SME growth, increasing rate of unemployment, growing adoption of online recruitment platforms and increased female workforce participation will drive growth. Factor that could hinder the growth of the employment services market in the future include were stringent and evolving labor regulations, regional job creation disparities and impact of trade war and tariff.

North America was the largest region in the employment services market, accounting for 43.18% or $845.35 billion of the total in 2024. It was followed by Asia Pacific, Western Europe and then the other regions. Going forward, the fastest-growing regions in the employment services market will be Africa and Middle East where growth will be at CAGRs of 14.15% and 12.57% respectively. These will be followed by North America and Eastern Europe where the markets are expected to grow at CAGRs of 11.92% and 11.82% respectively.

The global employment services market is fragmented, with large number of small players operating in the market. The top 10 competitors in the market made up 5.27% of the total market in 2024. The Adecco Group was the largest competitor with a 0.90% share of the market, followed by Randstad NV with 0.87%, Recruit Holdings Co. Ltd. with 0.72%, Manpower Inc with 0.71%, Allegis Group, Inc. with 0.61%, Persol Holdings with 0.47%, Hays Plc with 0.38%, Kelly Services Inc. with 0.23%, Robert Half International Inc. with 0.19%. and Express Employment Professionals with 0.19%.

The employment services market is segmented by type into employment placement agencies, executive search services, temporary help services and professional employer organizations. The professional employer organizations market was the largest segment of the employment services market segmented by type, accounting for 50.87% or $995.79 billion of the total in 2024. Going forward, the professional employer organizations segment is expected to be the fastest growing segment in the employment services market segmented by type, at a CAGR of 12.19% during 2024-2029.

The employment services market is segmented by mode into online and offline. The offline market was the largest segment of the employment services market segmented by mode, accounting for 60.54% or $1.18 trillion of the total in 2024. Going forward, the online segment is expected to be the fastest growing segment in the employment services market segmented by mode, at a CAGR of 14.55% during 2024-2029.

The employment services market is segmented by vertical into banking and financial, engineering, medical, information and technology, professional services and other verticals. The information and technology market was the largest segment of the employment services market segmented by vertical, accounting for 26.34% or $515.72 billion of the total in 2024. Going forward, the information and technology segment is expected to be the fastest growing segment in the employment services market segmented by vertical, at a CAGR of 17.11% during 2024-2029.

The top opportunities in the employment services market segmented by type will arise in the professional employer organizations segment, which will gain $774.31 billion of global annual sales by 2029. The top opportunities in the employment services market segmented by vertical will arise in the information and technology segment, which will gain $620.24 billion of global annual sales by 2029. The top opportunities in the employment services market segmented by mode will arise in the online segment, which will gain $750.87 billion of global annual sales by 2029. The employment services market size will gain the most in the USA at $617.82 billion.

Market-trend-based strategies for the employment services include adopt AI-powered conversational assistants to handle high-volume recruiting tasks, adopt flexible staffing models to manage increased demand during peak seasons, expand consulting and advisory services to help small- and mid-sized businesses (SMBs), enhance their job search features to provide more precise and personalized recommendations for job seekers and focus on recruiting leaders who can embed sustainability and ESG considerations into corporate strategy.

Player-adopted strategies in the employment services market include focus on expanding its diagnostics segment through strategic partnerships and focus on expanding its operational capabilities through new launches.

To take advantage of the opportunities, the analyst recommends the employment services market companies to focus on integrating conversational AI to streamline high-volume recruitment, focus on expanding flexible staffing models to meet seasonal demand, focus on expanding consulting and advisory services for SMB workforce solutions, focus on enhancing job search features to deliver personalized matchmaking, focus on strengthening executive search capabilities for ESG-driven leadership hiring, focus on expanding operations in the professional employer organizations segment, focus on expanding employment services in the information and technology segment, focus on strengthening presence in the online employment services segment, expand in emerging markets, continue to focus on developed markets, focus on strengthening multi-channel distribution networks, focus on developing flexible and value-based pricing strategies, focus on strengthening digital and content-based promotion, focus on building partnerships and event-based promotions and focus on building specialized teams for the banking and financial sector.