The global HR services industry saw turnover grow by 8.3% in 2022, totalling €632 billion, according to the Economic Report 2024 of the World Employment Confederation (WEC).

The report found that the first half of 2022 was still upbeat for the HR services industry, but agency work activity in terms of hours worked started declining across the globe towards the end of the year. Tight labour markets, characterised by high levels of job scarcity, peaked helping the global unemployment rate reduce from 6.1% in 2021 to 5.9% in 2022. At the same time, production limits due to lockdowns in crucial global economies like China and the rising demand after lockdown lifts triggered inflation.

The largest HR services markets’ sales revenues, such as the US, grew 8.3% in 2022, while Australian and Japanese markets expanded 13.4% and 12.7% respectively. Turnover in Germany grew 8.6%, while the UK registered a modest 1.8% increase. Among smaller markets, double-digit growth was registered in Canada (27.3%), Switzerland (+18.8%), China (18.3%) and India (+17.4%).

SIA shares market growth data as part of its partnership with the WEC though SIA’s definition of “staffing” may differ from the WEC’s definition of “HR services”. SIA staffing market estimates for 2023 and 2024 are available to our corporate members.

Despite the overall positive results in terms of the number of people that the HR Services sector helped find jobs, the agency work penetration rate was largely stable at 1.9% compared with 2021, indicating that the increase in the working age population in 2022 from the year before was proportional to the increase in the number of people placed in jobs.

Overall, the HR services sector remained an attractive sector, recording steady growth both in the number of agencies (1.9%) and staff (2.2%).

Marius Osterfeld, Chairman of WEC’s Economic Affairs Committee said, “In 2022, the HR services industry remained an anchor for millions of individuals and thousands of companies worldwide, facilitating the return of job seekers to employment and filling vacancies. Early indications suggest that the trend has not carried on in 2023 as the agency work activity dynamics stayed largely negative way throughout the year.”

“While the number of open job postings started gradually reducing, the gap is still wide, not least due to a skills mismatch,” Osterfeld added. “This fact points to a great need and opportunity for training and (re-)skilling of job seekers.”