The market for talent acquisition and staffing services demonstrated moderate growth in 2007 but at a slightly slower rate than in the prior year, a new study published by IDC reveals. This new research report forecasts that worldwide talent acquisition and staffing services spending will increase to $121.3 billion by 2012, for a compound annual growth rate (CAGR) of 8.6% during the forecast period. The U.S. market will again lead spending and will grow through 2012 at a CAGR of 8.8%. However, projected growth rates are down slightly from prior forecasts, indicating moderation in demand for recruiting and staffing-related spending worldwide.
"Worldwide unemployment was relatively low throughout 2007," said Lisa Rowan, program director, HR and Talent Management Services at IDC. "The U.S. unemployment rate was relatively steady throughout 2007 until it rose from 4.5% to 5.0% at the end of the year. Despite this rise and predictions of a slowing U.S. economy, the labor market remains tight, especially for positions in IT and in certain industries. Unemployment in Europe, the Middle East, and Africa (EMEA) remains higher than in the United States, but employers in these regions are also experiencing shortages in some talent areas."
Key findings from this IDC study include:
- The worldwide market for talent acquisition and staffing services in 2007 showed an increase of 8.3% over 2006. As has been the case, the United States accounted for the largest share of spending.
- Top vendors across most segments posted strong 2006 results, with double-digit growth in all but outplacement services.
- Workforce shortages are looming, even if there is an economic slowdown, due to the demographics of an aging population. Due to these factors, revenue related to talent acquisition and staffing will remain steady. Suppliers of such services will be uniquely positioned to help employers achieve competitive advantage through sourcing, hiring, and retention of top talent.
The IDC study, Worldwide and U.S. Talent and Acquisition and Staffing Services, 2008-2012 Forecast (IDC #210818), presents the 2007 actual revenue of the worldwide and U.S. markets for talent acquisition and staffing services, comparing growth over the prior year to 2006, and a five-year forecast. The purpose of this study is to identify and quantify the worldwide and U.S. market opportunities for these services areas and to offer recommended strategies for taking advantage of them. In addition to the forecast, this document presents the key market drivers, the macroeconomic factors, and any foreseeable risks and opportunities for the talent acquisition and staffing services market. This study also uncovers emerging trends and technologies that may have an effect on future vendor performance and customer adoption.
About IDC
IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 900 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 90 countries worldwide. For more than 43 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.
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Contacts:
Lisa Rowan, 508-988-6988
lrowan@idc.com
or
Michael
Shirer, 508-935-4200
press@idc.com
