Market Overview

The domestic human resources business market size by industry and occupation (total of 5 markets) based on the sales at businesses for FY2022 rose by 5.1% to 4,092,700 million yen.

Growth in demand for human resources observed in FY2021 continued in FY2022 due to full-scale recovery of business activities and operating rates at companies and client industries. Positive growth was retained for all five categories.

Noteworthy Topics

Construction Staffing Service Market

The construction staffing service market size based on the sales at businesses for FY2022 increased by 5.7% from the prior fiscal year to 560,000 million yen. Although the market was growing steadily until FY2019 against the backdrop of governmental construction investment and the construction for Tokyo Olympic & Paralympic games, after the construction demand for Tokyo Olympic & Paralympic games and that for restoration works slowed down from FY2020 to FY2021, together with coronavirus infections having suspended or stopped construction work at sites, the worker dispatch services became sluggish, and the market downturned. However, the market is turning for the better in FY2022, due to the requests for an increase in demand for temporary staffs for urban redevelopment and infrastructure development in regional areas, as well as for a reason of workstyle reform (optimization of working hours) and manpower shortage at major general construction companies, and the trend is projected to continue. For this reason, the construction staffing service market is expected to grow further.

*The construction staffing service market refers to the dispatch of construction managers for architectural, civil engineering, electrical, plumbing, landscaping, construction machinery, and telecommunication works, the dispatch of CAD operators who create and revise various drawings as well as operators with a skill to use 3D model-based tool like building information modeling (BIM), and of office workers for create, organize, and manage documents needed at each job site (including some placement service).

Future Outlook

The domestic human resources business market size by industry and occupation (total of 5 markets) for FY2023 is projected to rise by 4.3% from the previous fiscal year to 4,268,800 million yen.

Of the target five categories (engineer dispatch, sales and marketing staffing, manufacturer dispatch/contract working business, medical staffing, and caregiver securing service), each market is expected to retain growth except for the medical staffing market, where the demand for personnel involved in vaccinations and other medical-related tasks that were temporarily boosted by the COVID situation is declining.

In accordance with the reclassification of COVID-19 to Category 5 under the Infectious Disease Control Law in May 2023, the ‘inbound demand’ (consumption by foreign tourists visiting Japan) is recovering in earnt and the tourism demand is expanding. As a result, business activities in service industries like lodging, food services, and tourism are boosted, and the demand for human resources is increasing in full-scale. Against this background, it is assumed that the businesses in these service industries will hire more personnel, and/or increase the demand for staffing services. While competition for human resources is projected to heat up as a result of this trend, temporary staffing firms may have difficulty in securing/hiring temporary workers. There are concerns that there will be limited supply of talent.

Research Outline