Human Resources Services Market by Industry and by Work Type in Japan: Key Research Findings 2021
Human Resources Business Market Size by Industry and by Work Type (Total of 5 Service Categories) in FY2020 Declined by 9.7% to 3,639.1 Billion Yen
Yano Research Institute (the President, Takashi Mizukoshi) carried out a survey on the domestic human resources business market by industry and by work type and found out the trends of eight HR service categories (engineer dispatch service, sales and marketing staffing service, manufacturer dispatch/contract works service, medical staffing service, long-term care staffing service, human resources business companies for construction industry, childcare staffing service, and agricultural support staffing service), trends of market players, and future outlook.
The domestic human resources business market size by industry and by work type (total of service categories) based on the sales at businesses in FY2020 declined by 9.7 percent to 3,639.1 billion yen.
Although labor shortage and difficulty of securing human resources remained to be the major problem for various industries, which led the demand for human resources services to be on the rise, the COVID-19 pandemic affected each of HR business in every industry, and shrank the total human resources business market by industry and by work type (5 service categories) in FY2020. Of the five HR service categories, those that exceeded the preceding fiscal year in FY2020 were engineer dispatch business and long-term care staffing. That said, however, these two categories used to enjoy double-digit growth but slowed down to slight increase for that fiscal year. Manufacturer dispatch/contract works service, which is the largest among the five categories, declined from the previous fiscal year by approximately 15 percent.
Negative Growth in COVID-19 Calamity to Resume being on Growth Path, due to Recovery in Demand for Human Resources
In the COVID-19 calamity, stagnant business activities at enterprises reduced recruiting, which diminished the sizes of the following service categories in FY2020 from those in FY2019: Sales and marketing staffing, manufacturer dispatch/contract works, and medical staffing. The categories of engineer dispatch service and long-term care staffing service managed to exceed the sizes in FY2019, but ended up with slight increase by 3 to 4 percent, unlike double-digit growth that they enjoyed before.
For FY2021, as the ways of business activities and workstyles in COVID-19 calamity are to establish, the recovery of human resources demand in each industry is expected to be back on the growth track.
Especially, in the medical staffing service (recruiting service for qualified medical personnel), the demand for full-time and part-time doctors and nurses has improved to the level of usual years. Furthermore, establishment of vaccination venues expanded the demand for part-time doctors and nurses, which may make the market size of the service to outperform that of before the pandemic.
On the other hand, manufacturer dispatch/contract works service was affected by temporary or permanent closure of manufacturing factories in the Southeast Asian countries including Thailand due to the COVID-19 infections, which brought about stagnant procurement of components that led to lower operation rate at the factories in Japan. In particular, the level of sluggishness of automobile-related supply chains that occupies large part of the demand for manufacturer dispatch/contract works services may take a long time before the full recovery of the market.
Though the issue of COVID-19 infections continues in FY2021, as the ways of business activities and workstyles in COVID-19 calamity are about to be established, the market does not show a significant negative growth like in FY2020. Because of the reviving business activities at enterprises, together with each HR service demand showing recovery, the human resources business market by industry and by work type (total of 5 service categories) is projected to increase by 7.0 percent from the previous fiscal year to 3,894.3 billion yen.
Nevertheless, the degree of recovery and the growth speed hereafter are likely to vary by market category and by temporary staffing company, because many of companies not only from service industries such as food, accommodation, and events, but also from different industries are still facing sluggishness in their business activities in the COVID-19 calamity.
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