Temporary Labor Market To Hit Value 3.43 Billion By 2025 |Grand View Research, Inc.
Posted by Mrudula Karmarkar on June 15th, 2022
The global temporary labor market size is estimated to reach USD 673.43 billion by 2025, registering a CAGR of 6.4% from 2019 to 2025, according to a new study conducted by Grand View Research, Inc. Soaring need to employ temporary labor to offset labor shortages while handling additional projects or during peak periods is expected to drive the temporary labor market.
Artificial Intelligence (AI), Virtual Reality (VR), and Augmented Reality (AR) solutions are anticipated to substantially contribute while responding to the COVID-19 pandemic and address continuously evolving challenges. The existing situation owing to the outbreak of the epidemic will inspire pharmaceutical vendors and healthcare establishments to improve their R&D investments in AI, acting as a core technology for enabling various initiatives. The insurance industry is expected to confront the pressure associated with cost-efficiency. Usage of AI can help in reducing operating costs, and at the same time, can increase customer satisfaction during the renewal process, claims, and other services. VR/AR can assist in e-learning, for which the demand will surge owing to the closure of many schools and universities. Further, VR/AR can also prove to be a valuable solution in providing remote assistance as it can support in avoiding unnecessary travel. The report will account for Covid19 as a key market contributor.
Surging use of latest and advanced technologies, including augmented reality (AR) and virtual reality (VR), in recruitment processes is allowing recruiters to select best workforce. Small and medium enterprises across the world are increasingly hiring employees on temporary basis to reduce costs and provide flexible staff on an as-needed basis. This is likely to boost the growth of the market over the forecast period. There is an increasing demand for temporary workforce required during execution phase of development programs launched by various governments. At the same time, several nations are introducing guest worker programs, which envisage allowing foreign workers to work in host nation on a temporary basis as temporary workers. For instance, in the U.S., the H-2A and H-2B programs allow farm owners to bring in low-skilled workers for agricultural and non-agricultural tasks, respectively; provided these tasks are temporary, after applying formally to the Department of Labor (DOL).
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An employer is not obliged to provide retirement security, health insurance, and other compensations to temporary workers. In other words, enterprises can reduce average cost of hiring and prevent additional overhead costs from incurring by opting for temporary labor services. Moreover, organizations are free to hire temporary workers whenever they are required, for example, while handling additional projects and during peak periods. Such benefits bode well for the global temporary labor market.
Temporary Labor Market Report Highlights
Organizations opting for temporary labor services can experience several benefits, such as reduction in cost of hiring and savings on employee benefits costs and training costs. Moreover, organizations can opt for deploying these workers on non-core tasks and directing their resources towards core tasks. Such benefits are expected to prompt organizations to procure short-term labor services.
Enterprises often have to face shortage of manpower, particularly during peak periods or other exigencies. Organizations tend to opt for temporary labor services during such situations. Moreover, as the technology continues to evolve, the demand for workers with specific skills in design engineering, digital marketing, and software application, among others, is equally rising. Temporary workers can help organizations in bridging this gap.
Temporary workers can be deployed for various purposes. Companies often find it comfortable to employ these workers to maintain older infrastructure. Similarly, in retail stores, where footfall particularly tends to increase during public holidays and festive seasons, short-term workers are employed in order to ensure customer satisfaction. Temporary workers are also employed to cater to surging demand for on-demand delivery services associated with online shopping.
The key players in the market include Adecco, Allegis Group, Kelly Services, Inc.; ManpowerGroup Inc.; Randstad N.V., Hays plc, Robert Half International Inc.; Express Services, Inc.; Westaff; and Persol Holdings Co. Ltd. The companies are focusing on launching new products and services as part of their efforts to gain a competitive edge in the market. For instance, in March 2018, ManpowerGroup Inc. introduced a platform called IntelliReach for Managed Service Provider (MSP) TAPFIN. The platform helps in digitizing management tools and include supplier scorecards and data warehousing, which helps organizations to make better workforce decisions.
Incumbents of the market are striking strategic collaborations and undergoing mergers & acquisitions to expand their businesses and strengthening market position worldwide. For instance, in September 2017, Adecco acquired BioBridges, LLC, a life science profession staffing company, to expand its professional staffing services and offerings for the biotechnology, pharmaceuticals, and medical devices industries.
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About the AuthorMrudula Karmarkar
Joined: March 30th, 2020
Articles Posted: 163
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