In the three months to October 2025, there were approximately 723,000 job vacancies in the UK, down from 722,000 in September 2025, and the period with the fewest number of job vacancies since April 2021. The number of job vacancies in the United Kingdom reached a record high of 1.3 million in the three months to May 2022, with the number of vacancies steadily falling since then. During the provided time period, the number of job vacancies fell to its lowest levels in the months leading to June 2020, at just 328,000, at the height of COVID-19 restrictions. Tight labor market beginning to loosen After weathering the economic storm of COVID-19, the UK labor market was reasonably healthy between 2021 and 2024. An economic trend dubbed "The Great Resignation" saw the UK record 446,000 resignations in the second quarter of 2022, with many likely encouraged by the strong labor market at the time. Since that point, however, the UK unemployment rate has steadily crept up, reaching a post-pandemic high of five percent in September 2025. Which industries are experiencing staff shortages? The percentage of businesses reporting a staff shortage in the UK reached 15.7 percent in September 2022, before falling to just 7.5 percent as of October 2025, another indication of a loosening labor market. According to data from that month, approximately 18 percent of businesses in the education sector had a shortage of staff, the highest of any industry. Education was followed by accommodation and food services, with 13.6 percent of businesses in this sector reporting a staff shortage.

Graph and download economic data for Job Openings: Total Nonfarm (JTSJOL) from Dec 2000 to Aug 2025 about job openings, vacancy, nonfarm, and USA.

Rent inflation responds more to labor market conditions compared with other components of inflation. We attribute this link between labor market tightness and rent inflation to greater demand for rental units afforded by job gains and wage growth. Although online measures of asking rents currently suggest official measures of rent inflation will decline, we caution that rent inflation is likely to remain above pre-pandemic levels so long as the labor market remains tight.

U.S. labor demand—measured by job openings or vacancies—has started to cool but is still elevated compared with pre-pandemic levels. At the same time, labor supply—measured by the labor force participation rate—remains below pre-pandemic levels. This weakness in the labor force participation rate may persist, as it reflects lower participation among older individuals. Accordingly, the imbalance between demand and supply in the labor market may continue until labor demand cools further.

Workers displaced during the 2020 pandemic recession experienced almost no earnings loss, on average, compared to workers who lost jobs in the recessions of 1990-1991, 2001, and 2008-2009, and were more likely to regain employment, according to a new Economic Commentary from the Federal Reserve Bank of Cleveland.

Food inflation remains higher than measures of overall inflation, and labor markets have been tight. We find that processed food products have driven recent increases in grocery prices, and we argue that labor market tightness affects the prices of these labor-intensive products in particular through increases in production and distribution costs. Food inflation at grocery stores could remain elevated if price pressures on the supply side persist and demand for food at home remains strong.

Revenue in the Temporary Employment Placement Agencies industry is anticipated to grow at a compound annual rate of 4.1% over the five years through 2025 to €270.9 billion. The COVID-19 outbreak meant key employers of temporary workers in the hospitality and tourist sector shut their doors and companies froze hiring due to economic uncertainty, dealing a sizeable blow to revenue at the beginning of the five-year period. As the economy reopened in 2021, companies quickly resumed hiring, leading to record vacancies, especially within the service sector, driving up revenue for recruitment agencies. The widespread adoption of remote and flexible work arrangements has altered demand patterns, with clients seeking specialised talent for hybrid or short-term digital projects. Labour shortages in healthcare, logistics and IT industries have further fuelled demand for temporary staffing solutions. At the same time, agencies have faced heightened competition from online staffing platforms and digital marketplaces, driving investment in technology and automation to enhance candidate matching and streamline operations. Despite this, recruitment agencies have seen their profit fall over the past five years due to economic uncertainty, inflation and rising business expenses increasing operating costs. An increasingly tight labour market encourages employers to rely on temporary employment placement agencies to compete. Several European countries rank highly regarding temporary workers and have a large short-term job market. For example, in 2023, the Netherlands and Portugal had more than 15% of employed people under temporary contracts, according to Eurostat. Revenue is expected to swell by 4% in 2025 as a tight labour market across Europe encourages employers to rely on temporary-employment placement agencies. Revenue is slated to climb at a compound annual rate of 8.7% over the five years through 2030 to €410.3 billion. While the labour market is likely to remain tight in many countries due to skill mismatches, employers will keep turning to placement agencies for their databases to track and identify the right candidates. Companies will lean on temporary hires as the economic outlook remains unclear. However, threats to demand loom. The automation of more routine jobs will be a threat to some long-standing temporary jobs. Across Europe, countries that traditionally rely on a strong network of short-term workers are implementing policies that may disrupt or expand services – Spain already introduced reforms in late 2021 to increase permanent positions and remove temporary contracts. Temporary employment placement agencies will increasingly deploy AI procedures to increase efficiency, including AI chatbots and CV screening; companies that don’t follow suit risk being left behind in the age of AI evolution.

US job vacancies increased during the pandemic, but they’ve since declined. Economists are exploring whether this is a response to rising interest rates or to other labor market factors.

This table provides information about labor supply and demand conditions in occupational labor markets in North Carolina’s eight regions (“Prosperity Zones”) and the statewide total.

A “Career Cluster” is a broad group of occupations. Each Career Cluster contains occupations that require similar knowledge and skills. A “Career Pathway” is a specific group of occupations falling under a broader “Career Cluster”. Specific occupations falling within a given Career Cluster, Career Pathway, and education level can be found on the Star Jobs table.

These data can be used to compare occupational labor markets within a given region. A low supply/demand rate indicates a “tight” labor market—with few jobseekers per job opening—while a high supply/demand rate indicates a “slack” labor market. A tight labor market presents opportunities for jobseekers, but can lead to challenges for employers looking to hire.

These data can also be used to assess the alignment between the labor market and our state’s talent pipeline. “Labor needed” is the amount of additional labor supply needed to attain the statewide or regional supply/demand rate. “Completers” is the average number of individuals completing higher education programs at the University of North Carolina system or the North Carolina Community College System.

Data are updated on an annual basis to accommodate methodology improvements and revisions to the underlying data inputs.

Technical details about methodology can be found here.

Data sources:

Labor supply: LEAD analysis of data from the U.S. Bureau of Labor Statistics and the U.S. Census Bureau (American Community Survey, 2014-2016 average)

Labor demand: LEAD analysis of data from the Conference Board^© and the U.S. Bureau of Labor Statistics (2014-2016 average)

Completers: LEAD analysis of data from the N.C. Common Follow-up System (2010-2015 average)

Revenue in the Temporary Employment Placement Agencies industry is anticipated to grow at a compound annual rate of 4.1% over the five years through 2025 to €270.9 billion. The COVID-19 outbreak meant key employers of temporary workers in the hospitality and tourist sector shut their doors and companies froze hiring due to economic uncertainty, dealing a sizeable blow to revenue at the beginning of the five-year period. As the economy reopened in 2021, companies quickly resumed hiring, leading to record vacancies, especially within the service sector, driving up revenue for recruitment agencies. The widespread adoption of remote and flexible work arrangements has altered demand patterns, with clients seeking specialised talent for hybrid or short-term digital projects. Labour shortages in healthcare, logistics and IT industries have further fuelled demand for temporary staffing solutions. At the same time, agencies have faced heightened competition from online staffing platforms and digital marketplaces, driving investment in technology and automation to enhance candidate matching and streamline operations. Despite this, recruitment agencies have seen their profit fall over the past five years due to economic uncertainty, inflation and rising business expenses increasing operating costs. An increasingly tight labour market encourages employers to rely on temporary employment placement agencies to compete. Several European countries rank highly regarding temporary workers and have a large short-term job market. For example, in 2023, the Netherlands and Portugal had more than 15% of employed people under temporary contracts, according to Eurostat. Revenue is expected to swell by 4% in 2025 as a tight labour market across Europe encourages employers to rely on temporary-employment placement agencies. Revenue is slated to climb at a compound annual rate of 8.7% over the five years through 2030 to €410.3 billion. While the labour market is likely to remain tight in many countries due to skill mismatches, employers will keep turning to placement agencies for their databases to track and identify the right candidates. Companies will lean on temporary hires as the economic outlook remains unclear. However, threats to demand loom. The automation of more routine jobs will be a threat to some long-standing temporary jobs. Across Europe, countries that traditionally rely on a strong network of short-term workers are implementing policies that may disrupt or expand services – Spain already introduced reforms in late 2021 to increase permanent positions and remove temporary contracts. Temporary employment placement agencies will increasingly deploy AI procedures to increase efficiency, including AI chatbots and CV screening; companies that don’t follow suit risk being left behind in the age of AI evolution.

In the third quarter of 2025, approximately 210,000 job resignations took place in the United Kingdom, compared with 263,000 in the previous quarter. The number of resignations in Q2 2022 was the highest number taking place in a single quarter during this provided time period, reaching 446,000. In most years, there is a noticeable trend of resignations peaking in the fourth quarter of the year and being at their lowest in the first quarter. There is also a significant fall in people resigning from their jobs after the 2008 financial crisis and after the COVID-19 pandemic in 2020. The Great Resignation The high number of resignations that took place after COVID-19 hit also occurred in the United States. Throughout 2022, approximately 50 million American workers quit their jobs in a trend dubbed 'The Great Resignation' In both the UK and U.S. the trend corresponded with a very tight labor market. After emerging from the initial COVID-19 lockdowns, UK unemployment declined from 2021 onwards, falling to a low of just 3.6 percent in August 2022. There were also numerous job vacancies, which peaked in May 2024 at 1.3 million, though by the end of 2024, both indicators have returned to more typical levels. Labor market concerns for 2025 One of the main concerns of the UK government regarding the labor market is economic inactivity, in particular the reason for this inactivity, Since the COVID-19 pandemic, the number of people on long-term sick-leave, has increased substantially. At the start of 2020, there were approximately 2.12 million people economically inactive for this reason, with this increasing to almost 2.84 million by the end of 2023, with this declining only slightly to 2.77 million by the end of 2024. It is unclear if there is one overriding factor driving this surge, with possible causes including the prevalence of Long COVID, or the ongoing NHS crisis.

High school graduates in their twenties have consistently experienced a higher unemployment rate than college graduates in the same age range. However, the unemployment gap between the two education groups has recently narrowed, reaching its lowest level since the late 1970s. This Economic Commentary shows that this narrowing coincides with a decades-long decline, one that began around 2000, in the job-finding rate among young college graduates.

The Office Staffing and Temp Agencies industry has thrived by offering agile staffing solutions to corporate clients, despite a volatile economic environment. In the aftermath of labor market disruptions brought on by the pandemic, the economy bounced back quickly. Amid a tight labor market, businesses turned to temp agencies to help fill recruitment gaps, producing consecutive years of record growth. However, as inflationary concerns picked up and the Federal Reserve raised interest rates to slow private investment, trickling down to year-to-year declines for staffing agencies. Despite turbulence, industry revenue is expected to grow at a CAGR of 2.9% over the past five years, totaling $260.1 billion in 2025. In 2025, industry revenue is forecast to rise 8.9%, with interest rates expected to temper further.The economy is grappling with a significant skills gap, especially in manufacturing, construction, IT and healthcare, with over half of workers lacking the necessary training for these crucial industries. This gap has created a disparity between employer demands and the skills available in the workforce. In a tight labor market, staffing agencies remain vital, providing businesses with a readily available pool of workers. Agencies are prioritizing workforce development by partnering with training providers and educational institutions to offer upskilling and reskilling programs, preparing workers for high-demand roles. Artificial Intelligence (AI) is poised to transform recruitment by automating repetitive tasks, enabling agencies to deliver faster, more precise placements. As AI-driven tools become integral to the job market, agencies that stay ahead of the technology curve will be able to generate premium margins as overall profitability rises across the industry.In the coming years, staffing agencies will see growth as the economy expands, with workers rejoining the labor force turning to temp agencies to find temporary roles in hopes of securing a permanent position. Agencies will remain a permanent fixture in corporate strategies in the fast-growing healthcare sector, where temporary and travel nurses, medical coders and administrative support will be needed to meet the needs of an aging population. Consequently, industry revenue is expected to increase at a CAGR of 2.2% to reach $290.4 billion over the five years to 2030.

Employment Agencies Market Size And Forecast

Employment Agencies Market size was valued at USD 18.06 Billion in 2023 and is projected to reach USD 48.53 Billion by 2031, growing at a CAGR of 13.2 % during the forecast period 2024-2031.

Global Employment Agencies Market Drivers

The Employment Agencies Market is influenced by a variety of market drivers, which can significantly impact its growth and development. Some of the key drivers include:

Labor Market Dynamics: The overall health of the labor market, including employment rates, job vacancies, and talent shortages, drives demand for employment agencies. In tight labor markets, companies may rely more on agencies to fill positions quickly. Economic Conditions: Economic growth usually leads to increased hiring, encouraging businesses to use employment agencies for efficient recruitment processes. Conversely, during economic downturns, agencies may experience reduced demand.

Global Employment Agencies Market Restraints

The Employment Agencies Market, while offering various opportunities, also faces several market restraints that can impact its growth and effectiveness. Here are some of the key constraints:

Regulatory Challenges: Employment agencies must navigate a complex web of regulations, labor laws, and compliance requirements that can vary significantly by region. Noncompliance can lead to legal issues and fines. Economic Fluctuations: Economic downturns can lead to reduced hiring by companies, which directly affects the demand for employment agencies. In times of recession, businesses may rely more on internal hiring processes or cut back on staffing altogether.

Since the COVID-19 pandemic, the United States has experienced sharply rising then falling inflation alongside persistent labor market imbalances. This Economic Commentary interprets these macroeconomic dynamics, as represented by the Beveridge and Phillips curves, through the lens of a macroeconomic model. It uses the structure of the model to rationalize the debate about whether the US economy can expect a hard or soft landing. The model is surprised by the resiliency of the labor market as the US economy experienced disinflation. We suggest that the model’s limited ability to capture this resiliency is a feature of using a linear model to forecast the historically unprecedented movements seen after the pandemic among inflation, unemployment, and vacancy rates. We explain how, by adjusting the model to mimic congestion in a tight labor market and greater wage and price flexibility in a high-inflation environment, as during the post-pandemic period, the model can then capture what has been a path consistent with a soft landing.

The Employment and Recruitment Agencies industry surged at an unprecedented rate in the immediate aftermath of the COVID-19 pandemic. A tight labor market with record high quits saw businesses turn to agencies to help fill recruitment gaps, resulting in revenue growth of 52.0% in 2021 alone. The need for workers in this tight labor market translated into higher service prices, supporting record-setting profit growth during the year. However, strong inflation prompted the Federal Reserve to raise interest rates, slowing the pace of expansion. As companies tamped down on recruitment, employment and recruiting agency services saw revenue drop in consecutive years. Nonetheless, agencies have ridden the never-before-seen surge, with industry revenue forecast to rise at a CAGR of 1.8% to reach $32.1 billion through 2025, although the industry is forecast to shrink 6.7% during the current year.Agencies have embraced long-term digital trends and data analytics in decision-making processes. Advanced software tools now enable simultaneous job postings across multiple platforms, broadening their reach and efficiency. Through data analytics, agencies gain valuable insights into candidate behavior and market trends, sharpening their recruitment strategies. However, local social networks are emerging as formidable alternatives, offering direct access to potential candidates, challenging traditional methods. To maintain competitiveness, many agencies are diversifying their services. Agencies have expanded beyond conventional staffing to offer human resource consulting, talent management solutions and tailored recruitment services specializing in specific industries. This shift not only meets the evolving needs of clients, but also positions agencies as multifaceted service providers in a rapidly changing job market.The Federal Reserve is expected to lower interest rates in the coming years despite inflation fears stemming from tariffs initiated by the Trump administration, prompting hiring across the economy to rise at a faster rate. Agencies will be crucial to helping companies staff up in a tightening labor market, as their services remain essential for matching employers with qualified candidates. Industry revenue is forecast to grow at a CAGR of 2.0% over the next five years, reaching $34.4 billion in 2030. As technology continues to dominate the global economy, recruiters specializing in tech talent, especially in high-demand fields like cybersecurity, will be poised for growth. Talent shortages in high-tech fields will persist, making it incumbent on agencies to expand their offerings to include training partnerships and upskilling initiatives.

Talent Discovery Platforms Market Outlook

According to our latest research, the global Talent Discovery Platforms market size reached USD 4.2 billion in 2024, reflecting robust growth driven by the increasing adoption of digital solutions in talent acquisition and management. The market is expected to expand at a CAGR of 13.1% from 2025 to 2033, reaching a projected value of USD 12.2 billion by 2033. This impressive growth trajectory is underpinned by the escalating need for streamlined recruitment processes, advanced analytics, and the growing emphasis on workforce optimization across various industries.

One of the primary growth factors for the Talent Discovery Platforms market is the rapid digital transformation in human resource management. Organizations worldwide are increasingly leveraging artificial intelligence (AI), machine learning, and big data analytics to enhance their talent acquisition strategies. These platforms facilitate data-driven decision-making, enabling HR teams to identify, evaluate, and onboard top talent efficiently. Furthermore, the integration of predictive analytics and natural language processing in these platforms has significantly improved candidate matching accuracy, reducing time-to-hire and enhancing overall recruitment outcomes. As companies strive to remain competitive in a tight labor market, the adoption of sophisticated talent discovery solutions is becoming a necessity rather than an option.

A second major driver is the shift towards remote and hybrid work models, which has expanded the talent pool beyond geographical boundaries. Talent Discovery Platforms enable organizations to tap into global talent, manage distributed teams, and ensure compliance with local labor regulations. The platforms’ ability to provide real-time insights into candidate pipelines, skill gaps, and workforce diversity is crucial for multinational enterprises seeking to build agile and resilient teams. Additionally, the growing importance of employer branding and candidate experience is compelling companies to invest in platforms that offer seamless, engaging, and personalized recruitment journeys, further fueling market growth.

Another significant factor propelling the market is the increasing focus on diversity, equity, and inclusion (DEI) in the workplace. Modern Talent Discovery Platforms are equipped with features that help mitigate unconscious bias in hiring, promote fair assessments, and support inclusive talent pipelines. These platforms offer advanced analytics and reporting tools that allow organizations to track DEI metrics and align their talent strategies with corporate social responsibility goals. The heightened regulatory scrutiny and societal expectations regarding workplace diversity are prompting organizations across sectors to prioritize inclusive hiring practices, thereby accelerating the adoption of advanced talent discovery solutions.

From a regional perspective, North America continues to dominate the Talent Discovery Platforms market due to the presence of leading technology providers, high digital maturity, and a dynamic labor market. Europe follows closely, driven by stringent labor regulations and the increasing adoption of digital HR solutions in countries such as the UK, Germany, and France. The Asia Pacific region is emerging as a high-growth market, fueled by rapid economic development, a burgeoning workforce, and the accelerated digitalization of HR processes in countries like India, China, and Japan. Meanwhile, Latin America and the Middle East & Africa are witnessing steady growth as organizations in these regions recognize the value of modern talent discovery tools in addressing workforce challenges and driving business transformation.

Component Analysis

The Component segment of the Talent Discovery Platforms market is bifurcated into Software and Services, each playing a pivotal role in the overall value proposition of talent management solutions. The software component, which encompasses core platforms, analytics engines, and AI-driven candidate matching tools, accounts for the largest revenue share. Organizations are increasingly investing in comprehensive software suites that offer end-to-end talent discovery capabilities, including job posting, candidate sourcing, skills assessment, and onboarding. The integration of advanced technologies such as machine learning, natural language processing, and sentiment analysis has elevated the functionality a

According to a December 2022 report, the financial technology and technology industries saw the highest increases in job cuts when compared with the previous year. The financial technology (FinTech) industry saw a ******* percent increase in job cuts in 2022. FinTech companies are those using non-traditional financial methods to deliver financial services such as AI, blockchain, cloud computing, and big data. The FinTech industry saw boom during the early days of the pandemic, driven by low interest rates and tight financial conditions for consumers.

Revenue in the Temporary Employment Placement Agencies industry is anticipated to grow at a compound annual rate of 4.1% over the five years through 2025 to €270.9 billion. The COVID-19 outbreak meant key employers of temporary workers in the hospitality and tourist sector shut their doors and companies froze hiring due to economic uncertainty, dealing a sizeable blow to revenue at the beginning of the five-year period. As the economy reopened in 2021, companies quickly resumed hiring, leading to record vacancies, especially within the service sector, driving up revenue for recruitment agencies. The widespread adoption of remote and flexible work arrangements has altered demand patterns, with clients seeking specialised talent for hybrid or short-term digital projects. Labour shortages in healthcare, logistics and IT industries have further fuelled demand for temporary staffing solutions. At the same time, agencies have faced heightened competition from online staffing platforms and digital marketplaces, driving investment in technology and automation to enhance candidate matching and streamline operations. Despite this, recruitment agencies have seen their profit fall over the past five years due to economic uncertainty, inflation and rising business expenses increasing operating costs. An increasingly tight labour market encourages employers to rely on temporary employment placement agencies to compete. Several European countries rank highly regarding temporary workers and have a large short-term job market. For example, in 2023, the Netherlands and Portugal had more than 15% of employed people under temporary contracts, according to Eurostat. Revenue is expected to swell by 4% in 2025 as a tight labour market across Europe encourages employers to rely on temporary-employment placement agencies. Revenue is slated to climb at a compound annual rate of 8.7% over the five years through 2030 to €410.3 billion. While the labour market is likely to remain tight in many countries due to skill mismatches, employers will keep turning to placement agencies for their databases to track and identify the right candidates. Companies will lean on temporary hires as the economic outlook remains unclear. However, threats to demand loom. The automation of more routine jobs will be a threat to some long-standing temporary jobs. Across Europe, countries that traditionally rely on a strong network of short-term workers are implementing policies that may disrupt or expand services – Spain already introduced reforms in late 2021 to increase permanent positions and remove temporary contracts. Temporary employment placement agencies will increasingly deploy AI procedures to increase efficiency, including AI chatbots and CV screening; companies that don’t follow suit risk being left behind in the age of AI evolution.