Revenue in the HR Provision industry is anticipated to dip at a compound annual rate of 3.8% over the five years through 2024 to €21.2 billion. This drop is down to turbulent economic conditions that have slowed company spending across Europe and cut space in businesses’ budgets for HR services. Surging inflation throughout Europe over the past couple of years has seen businesses reduce their spending on outsourcing HR services, while demand from the public sector has suffered in the face of governments cutting their budgets. In 2024, some HR providers have found opportunities in helping companies negotiate cuts to their workforces due to economic slowdowns across many European countries. Revenue is expected to drop by 2.2% in 2024. Revenue is slated to swell at a compound annual rate of 4.1% over the five years through 2029 to €26 billion. Artificial intelligence has already started to transform HR services across Europe and this is only set to become more prominent in the future, with analytics enhancing how companies can strategise and conduct future workforce planning. HR professionals will be better able to use AI to sift through CVs quickly and use data to predict the potential of a candidate being successful in their role. Companies will be able to create personalised training programmes and establish work advancement pathways through outsourcing to HR services. Workplace regulations will continue to evolve across Europe as employees demand greater rights and protection, raising demand for HR services to keep companies consulted on law changes and ensure employee satisfaction.

Europe’s management consultants industry plays a vital role in shaping businesses by offering expert advice and strategies. In recent years, IT strategy and environmental consulting have seen significant growth, supporting industry revenue. Management consultants faced setbacks due to volatile economic conditions and subdued business spending amid the COVID-19 pandemic and severe inflation. Industry revenue is expected to sink at a compound annual rate of 2.7% to €374.7 billion over the five years through 2024, including a forecast dip of 1.5% in 2024. A growing number of enterprises across Europe has expanded the potential client pool for management consultants. Rising digitalisation and significant technology adoption among businesses and consumers fuel demand for IT strategy consulting. However, industry players face strong competition from computer consultants. Growing environmental awareness and sustainability targets in the EU and nations outside of the bloc are driving demand for environmental consulting, with businesses seeking ways to make operations more sustainable. Changing regulations and the introduction of new rules also provide support as management consultants help businesses navigate these regulatory changes. However, the COVID-19 outbreak and the subsequent soaring inflation have subdued business sentiment and activity, weakening spending as they seek to cut costs. Sinking revenue has been limited by stronger business demand for countercyclical services like risk management. Competitive pressures and rising wage costs as firms fight for skilled staff have weighed on the industry’s profit margin. More favourable economic conditions will pave the way for higher business activity and greater spending on management consultants as companies seek to make their operations more efficient. Revenue is forecast to climb at a compound annual rate of 4.6% to €469.7 billion over the five years through 2029. As digitalisation continues, demand for IT strategy consulting will fuel demand. At the same time, businesses striving to meet 2050 net zero targets will drive demand for environmental consulting. Despite increasing competitive pressures, management consultants will be forced to innovate, utilising technology advancements like AI and big data to enhance their offerings. Smaller firms will likely hone their focus on niche markets like IT strategy or environmental consulting.

Employment placement agencies in Europe’s revenue is anticipated to contract at a compound annual rate of 9% over the five years through 2025 to €65.4 billion. The COVID-19 outbreak tanked business confidence and expansion plans because of economic uncertainty after months of global lockdowns, forcing hiring freezes in a tricky time for employment agencies. 2022 marked a resurgence for agencies, with companies entering a hiring frenzy post-pandemic. The labour market is cooling in 2025 amid greater global uncertainty with US tariffs impacting business confidence. Still, employment across Europe remains high. According to Eurostat data, employment in the EU reached a record peak of 75.8% in 2024. Companies enjoyed a post-COVID-19 boom in hiring, as the economy reopened and companies began to look to expand thanks to improved business confidence, which kept employment agencies busy. The labour market has proved resilient against the economic background of high interest rates and high inflation in recent years, but remains tight with several unfilled vacancies. Vacancies have dipped from the sharp rise post-COVID-19 when companies unfroze hiring decisions. Available vacancies are proving difficult to fill in 2025, indicating a skills mismatch between job seekers and roles that agencies are struggling to negotiate. Several countries attempt to address long-standing labour shortages to ameliorate professional mobility and offer training courses for in-demand skills through agencies. France, for example, is addressing youth unemployment through upskilling training programmes. Public sector hiring in Germany and Spain in health and education also pushes revenue growth for agencies compared to stunted private sector demand. Revenue is expected to rise by 8.7% in 2025 amid job cuts in the technology sector. Revenue is projected to swell at a compound annual rate of 13.2% over the five years through 2030 to reach €121.6 billion. Agencies will continue to target revenue growth by elevating their online presence, specialising their services towards more niche sectors and targeting executives and upper management positions. Technological developments remain a threat to recruiters, with HR AI systems like Paradox able to scan networking platforms such as LinkedIn for candidates. Companies’ in-house HR teams are expanding too. The sustainability sector looks to be a hot property job market to target, but potential shortages in both high and low-skilled occupations driven by employment growth in STEM professions and healthcare will create hurdles in the hiring process in other sectors.

This industry offers advice and assistance to businesses on management issues, like strategic and organisational planning, budgeting assistance, marketing strategies and human resource policies. It also encompasses management consultants that oversee the management of different companies.