Human Resources Business by Industry/Occupation for FY2019 Grew by 7.2% YOY
Yano Research Institute (the President, Takashi Mizukoshi) has carried out a survey on the market of human resource business by industry/occupation in Japan, and found out the market trends, the trends at market players, and future perspectives of 8 markets in staffing business (engineer dispatch business, sales and marketing staffing business, manufacturer dispatch and contract working business, medical staffing business, caregiver securing business, construction worker staffing business, childcare staffing business, and agriculture staffing business).
The market size of the human resource business by industry/occupation (based on the total of 5 markets) for FY2019 rose to 439,800 million yen, up 7.2% from the preceding fiscal year.
While labor shortage and predicaments for securing manpower remained an issue for various industries, demand continues to expand for human resource business such as dispatching services. Nevertheless, after March 2020, the impact of COVID-19 infections has altered surrounding environment of the human resource businesses drastically, and the market growth has been declining since the end of FY2019. Out of the five markets of human resources business, only two markets, engineer dispatch business and caregiver securing business, made a two-digit growth in FY2019 from the previous fiscal year. Meanwhile, the influence of COVID-19 slowed down the market of manufacturer dispatch and contract working business, sales and marketing staffing business, and medical staffing business (staffing service that introduces staffs with qualifications in medical field).
Trends at 3 Markets that Anticipates Growth
Out of the 8 markets of human resource business by industry/occupation in this research, construction worker staffing business, childcare staffing business, and agriculture staffing business are expected to experience growth hereafter. (Note that the market size is not being estimated.)
< Construction worker staffing business >
Staffing business for construction industry mainly indicates dispatching staffs for construction management, as well as administrative staffs for field offices and CAD (Computer Aided Design) operators. A construction manager is a field supervisor responsible for management tasks including process management, quality management, as-built drawing management, safety control, and cost management. Construction industry faltered for a long time due to collapse of the bubble economy and Lehman shock. However, construction demand is on the rise, fueled by hosting of the Tokyo Olympic and Paralympic Games, rise in investments for public works projects, and demand for maintenance of antiquated infrastructure. Still, due to a long economic slump, even though the economy is picking up, the construction industry (general contractors, construction companies, etc.) tends to hold back on increasing employments.
<Childcare staffing business>
Increase in the number of working women has expanded the needs for childcare services, and children on waiting lists for childcare services continue to be an issue. Meanwhile, competition is becoming harsher among nurseries to secure staffs. The situation has increased the demand for businesses that provides job information targeted to childcare nurses and staff dispatching/introducing services for childcare facilities.
<Agriculture staffing business >
Although this market is yet to be formed, since the agricultural industry faces serious labor shortage particularly during harvesting season and is intrinsically labor intensive, it is assumed that the industry is compatible with dispatching services. As foreign workers increase, demand for the services is expected to rise. However, there is a concern for drop in demand due to decrease in the number of persons employed in agriculture, in addition to making improvements in working conditions like wages.
In response to the state of emergency imposed in April 2020, many companies had to suspend some of their business activities, and the situation diminished the demands for human resource (manpower) in many industries. The market of manufacturer dispatch and contract working business, which accounts for largest market size among 5 markets of staffing businesses by industry/occupation, was most significantly affected. The market of human resource business by industry/occupation (as a total of 5 markets) for FY2020 is projected to fall to 3,842,600 million yen, down 4.9% from the previous fiscal year.
As the declaration of state emergency was lifted, demand for human resource businesses gradually returned as companies get their businesses back on track. Although it is uncertain when the COVID-19 pandemic will be over, it is assumed that demands for human resource business recovers from 2021 as businesses normalize or new work style during COVID-19 crisis become normal. Nonetheless, the level of demand recovery or speed of recovery may differ depending on the industry or occupation of the users of human resource business services.
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