Market Size of New Graduate Recruitment Support Services for FY2019 Rose by 2.5% from Previous Fiscal Year to Achieve 128,690 Million Yen
Yano Research Institute (the President, Takashi Mizukoshi) has conducted a survey on the domestic market of new graduate recruitment support services and has found out the market trends by service, trends of market players, and future outlook.
Market size of new graduate recruitment support services for FY2019 rose by 2.5% from the previous fiscal year to achieve 128,690 million yen.
Underpinned by the enterprises’ eagerness to hire new graduates against a backdrop of a concern over potential future shortage of labor and human resources, the new graduate recruitment support services market has been expanding. Nonetheless, the market is hugely influenced by the spread of COVID-19.
Traditionally, every year students and companies get involved in job hunting/recruiting from March, an official start month of the new graduate recruitment activities. However, all recruitment and selection activities were brought to a virtual standstill for the class of 2021 on account of the declaration of state emergency from April to May 2020, which imposed a voluntary ban on all kinds of social activities. Even when the recruiting activities resumed, in-person assemblies like job fairs were replaced by online events, while job interviews which used to be done face-to-face are switched to online interviews. Moreover, as job offering enterprises impacted by the COVID-19 crisis reduced the number of new hires, opportunities for students and user companies to use new graduate recruitment support services decreased regardless of category, and tendency of a seller’s market weakened. Meanwhile, owing to a growing trend of handpicking at enterprises (intensification of severity in hiring criteria) stemming from reconsideration of their new graduate recruitment plans/reduction of new hires, demand is on the rise for not only conventional methods for new graduate recruitment such as recruitment information websites and event/seminars, but also for new graduate staffing services and direct recruitment services.
It is true that new graduate recruitment support service providers are affected negatively by the demand shrinkage due to reconsideration of new graduate recruitment plans/reduction of new hires at user companies. Nevertheless, for the years to come, they are expected to deal with new needs emerging from the changes in surrounding environment brought by COVID-19 calamity, and also to meet the demands for services to solve persisting issues in recruitment of new graduates.
Positive and Negative Influence of COVID-19 Pandemic to Market
COVID-19 pandemic has exerted negative impact on the market of new graduate recruitment support services, as it led companies to reconsider new graduate recruitment plans/reduce new hires. Decline is notable especially in the main market segments, the market of events/seminars and recruitment information websites.
In 2020, major assembly events in March-May period were either cancelled or postponed. Although online events became a mainstream, the market of events/seminars suffered from a drop in unit price from conducting online events, reconsideration of new graduate recruitment plans/reduction of new hires at companies, and shift in demand for other services.
Negative impact was also seen in the recruitment information website market, not only by the reconsideration of new graduate recruitment plans/reduction of new hires at job offering companies but also by expansion of demand for new recruitment methods such as direct recruitment service and new graduate staffing service.
Inversely, the market of direct recruitment service is growing amid COVID-19 crisis. Demand is expanding against a background of shift in recruitment activities from offline to online and changes in recruiting procedures/methods, increasing the number of students and user companies registered.
The market size of new graduate recruitment support services for FY2020 is expected to achieve 117,900 million yen, a decrease by 8.4% from the previous fiscal year, which may then rise by 4.7% to attain 123,450 million yen in FY2021.
The new graduate recruitment support services market for FY2020 is expected to turn for the worse because of cancellations of assembly events to prevent the spread of COVID-19 infection and reduction of new graduate hires at companies. Still, out of seven categories of the market, new graduate staffing, new graduate assessment tools, and direct recruitment services anticipate positive growth.
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