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Private Employmen
Services History

Over the years the private employment services industry has grown to provide a variety of labour
market services. Its history dates back to the 19th century, but the industry truly started to grow
after the second world war. As labour was in short supply, private employment agencies started
to operate to fill gaps within labour markets by matching workers with employers.

The private employment services industry provides a wide range of HR services; the major ones being:

LABOUR MARKET INTELLIGENCE

TALENT ACQUISITION

PLACEMENT

ADVISORY SERVICES

MANAGED SERVICES

CAREER MANAGEMENT

Private Employment Services Industry & Covid-19 Crisis

The COVID-19 pandemic that hit the world in 2020 has posed an unprecedented, major challenge to economies and societies around the world. It has severely impacted the private employment services sector which has been working hard to weather the crisis. The sector is also instrumental to the economic recovery. The immediate first step is to enable workers to resume work in the greatest health and safety conditions. But to enable a sustainable economic recovery in the longer-term, workers, businesses and society must be better prepared to work in more fluid and agile situations.

The World Employment Confederation has set up a dedicated task force for its members to pool their expertise on these two dimensions and to come up with solutions and recommendations that can be implemented in cooperation with public authorities, other economic sectors, trade unions and society as a whole.

WEC publications

The World Employment Confederation produces its own research in order to increase knowledge
about the private employment services industry.

Economic Report

Each year, by collecting data from members as well as partner institutions, the World Employment Confederation publishes a comprehensive report with facts and figures about the global private employment services industry. In addition to insights into market size in terms of sales revenues and number of placements, the report also provides sectoral and regional data as well as breakdowns by HR service segment.

Economic Report 2023

Economic Report 2022

Economic Report 2021

All past editions can be found in our Resources hub. Use the “Publications” filter for quicker access.

Social Impact Report

The Social Impact Report shows the positive contribution that private employment services bring to labour markets around the world. It covers areas such as labour market activation, transitions
and inclusiveness, skilling, working conditions and social protection.

Social Impact Report 2022

Social Impact Report 2021

Social Impact Report 2020

All past editions can be found in our Resources hub. Use the “Publications” filter for quicker access.

WEC Research Projects

The World Employment Confederation engages in several projects with external partners to further explore the evolution of labour markets and the role of the private employment services industry in the changing world of work.


This study demonstrates the potential of private employment services to enable adaptation to seasonal, cyclical and structural changes in the labour market.

Adapting to Change

Boston Consulting Group

Focusing on the six largest European markets at the time (France, the UK, the Netherlands, Germany, Belgium and Spain), the research concludes that the private employment services industry provides an engine for job creation and economic growth, while also efficiently contributing to transitions and transformations in the labour market.

More work opportunities for more people – unlocking the private employment
agency industry’s contribution to a better functioning labour market

Bain & Company

This study looked at the industry and its workers from a more qualitative perspective. Findings show that workers engage with agencies in order to find permanent employment, as well as to screen possible employers, gain work experience and to top-up their income. User companies primarily aim to counter market fluctuations by increasing workforce flexibility, but also use the service to screen new staff.

Rationale of Agency Work – European labour suppliers and demanders’
motives to engage in agency work

Ecorys

The first piece of strategic research on this scale into the employment services industry points out that if regulation were updated and restrictions on the use of agency work lifted, the industry could account for up to 10% of the employment growth target set out under the European Union’s Lisbon Objectives.

Orchestrating the evolution of Private Employment Agencies towards
a stronger society – four million new jobs for Europe

McKinsey & Company

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