Market Overview

Based on the sales from relevant businesses, the three major HR business categories (temporary staffing, white-collar job recruitment, and outplacement) reached 9.7962 trillion yen in FY2024, representing a 3.4% year-on-year increase. Specifically, sales from temporary staffing were 9.322 trillion yen (up 3.0%), sales from white-collar job recruitment were 449 billion yen (up 12.0%), and sales from outplacement were 25.2 billion yen (up 2.4%).

As labor shortages persisted, more companies turned to the temporary staffing market. Many temporary staffing companies addressed to raise their temporary staff wages by increasing the dispatch rate, contributing to the market’s steady growth. However, the increased cost of competing for good talent hinders market growth.

The white-collar job recruitment market flourished with middle-aged personnel and specific professionals, including management-level personnel and highly skilled IT engineers. These professionals require high referral fees. Consequently, the market grew steadily.

The outplacement market also expanded, as more companies implemented structural employment reforms aimed at organizational strength. These efforts were based on long-term business strategies that accounted for structural changes in industries, despite short-term labor shortages.

Noteworthy Topics

Advancements in AI Improve Service Value in the HR Business Market

An increasing number of companies in the HR business market are using features and services powered by generative AI and other digital technologies.

Traditionally, these businesses typically offered sentence generation services to help jobseekers and temporary staff to fill out their profiles and job histories. Recently, however, the scope of digital technologies has expanded. AI now assists jobseekers by conducting mock interviews and offering suggestions for improvement. AI is also used to match temporary staff with qualitative information about client companies, such as corporate culture and work atmosphere, to ensure compatibility.

In the HR business market, where differentiation between businesses is difficult, implementing digital tools is expected to create a new competitive advantage. Consequently, HR businesses continue to use digital technologies to enhance their services.

Future Outlook

Based on the sales from relevant businesses, the three major HR business categories (temporary staffing, white-collar job recruitment, and outplacement) is expected to reach 10.955 trillion yen in FY2025, which is a 3.1% year-on-year increase. Persistent labor shortages will likely drive growth in temporary staffing and white-collar job recruitment businesses, boosting the market beyond 10 trillion yen.

Research Outline