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Headhunting Agencies

Headhunting Agencies

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Executive summary

The Employment and Recruiting Agencies industry has grown over the five years to 2022, despite a collapse of the labor market in 2020, which reduced demand for recruiting and job placement services that year. The industry places job-seekers in available positions, taking commissions from client businesses that seek capable employees.
The COVID-19 (coronavirus) pandemic severely affected industry performance in 2020, after causing the national unemployment rate to increase 120.7%. However, unemployment is expected to decline a combined 64.3% in 2022, driving industry growth. As a result, industry revenue has increased at an annualized rate of 5.3% to $28.5 billion over the five years to 2022, including an increase of 2.2% in 2022.
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Each report includes:

industry revenue;

industry profit;

industry margin;

industry employment;

industry major players;

industry key external drivers;

industry product & structure segmentation;

industry key trends;

industry Life Cycle;

industry Geographic Breakdown;

industry Key Success Factors;

industry Key statistics for previous years;

forecast of industry Key statistics for the next 5 years;

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Reference Wordlist

High barriers to entry mean that new companies struggle to enter an industry, while low barriers mean it is easy for new companies to enter an industry.

Compares the amount of money spent on capital (plant, machinery and equipment) with that spent on labor.
IBISWorld uses the ratio of depreciation to wages as a proxy for capital intensity. High capital intensity is more than $ 0.333 of capital to $ 1 of labor; medium is $ 0.125 to $ 0.333 of capital to $ 1 of labor; low is less than $ 0.125 of capital for every $ 1 of labor.

The dollar figures in the Key Statistics table, including forecasts, are adjusted for inflation using the current year (i.e. year published) as the base year. This removes the impact of changes in the purchasing power of the dollar, leaving only the "real" growth or decline in industry metrics. The inflation adjustments in IBISWorld’s reports are made using the US Bureau of Economic Analysis’ implicit GDP price deflator.

Spending on industry goods and services within the United States, regardless of their country of origin. It is derived by adding imports to industry revenue, and then subtracting exports.

The number of permanent, part-time, temporary and seasonal employees, working proprietors, partners, managers and executives within the industry.

Colloquial Terminology

The opposite of outsourcing; performing a duty or task within the company itself, rather than through an outside source.

Services provided to a terminated employee to assist their search for a new job.

The use of outside service providers to perform various noncore activities.


Industry demand is dependent on changes in labor usage and turnover rates. The national unemployment rate shot up in 2020, reflecting poor economic conditions. Technological developments also have a major effect on the industry, with online job boards creating opportunities for new operators. Similarly, the adoption of computer programs has increased the automation and improved the efficiency of matching candidates with job listings. The industry is expected to grow for most of 2022, but struggle later on as monetary policy reduces hiring rates. Unable to repolicate strong growth in 2021, the industry is expected to idle in a peaking labor market. Profit is expected to increase in the current period, driven by revenue outpacing wage growth due to increased automation and digital services.

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