The market for on-demand staffing platforms is projected to expand from US$ 168.48 million in 2022 to US$ 386.24 million by 2028, reflecting a compound annual growth rate (CAGR) of 14.8% during this period.
The staffing sector is increasingly channeling investments into automation to enhance the efficiency of hiring and recruitment processes. Staffing agencies are focusing on on-demand staffing platforms to streamline time tracking, attendance, and expense management, thereby boosting operational efficiency. Additionally, there is a notable shift from traditional on-premise solutions to cloud-based systems within the staffing industry. The rising need for monitoring hourly workers has spurred demand for automation in recruitment, marking a significant trend in the on-demand staffing platform market growth.
Asia Pacific (APAC) is anticipated to exhibit the highest CAGR in the on-demand staffing platform market from 2022 to 2028. The region faced a downturn in employment rates during the height of the COVID-19 pandemic, revealing a considerable disparity between the number of qualified individuals and available job opportunities, a situation expected to worsen in the coming years. A report from the International Labor Organisation indicates that APAC is recovering from the loss of over 57 million jobs in 2020, with a projected decline in job availability until 2023. Despite this, there remains a shortfall of 22 million jobs in 2022, equating to a jobs gap of 1.1%, which is expected to rise to 1.4% in 2023. The agriculture, forestry & fishing, and manufacturing sectors are the largest employers in the region, while the wholesale and retail trade sectors collectively represent about 60% of the region's 1.9 billion workforce. However, startups in the on-demand staffing platform space in APAC face challenges, particularly regarding cultural shifts in workplace environments, the prequalification of blue-collar workers, and establishing partnerships with recruitment agencies.
In Indonesia, the government has relaxed labor regulations to facilitate swift temporary hiring, which has accelerated the uptake of on-demand staffing platforms in the country. In October 2022, PERSOL, a leading HR service provider in APAC, acquired Workmate, Singapore's rapidly growing on-demand staffing platform. This acquisition aims to enhance Workmate's workforce solutions across the region, thereby driving the growth of on-demand staffing platforms.
According to the Monster Employment Index report from 2022, online recruitment in the Middle East's staffing industry surged by 15%, with job demand increasing as the employment index rose from 115 in August 2021 to 132 in August 2022. The banking, financial services, and insurance (BFSI) sector is witnessing a significant rise in e-recruitment activities annually, alongside growth in the retail and logistics sectors. The increase in small businesses, coupled with online recruitment, is further fueling the demand for on-demand staffing platforms in the Middle East. Flexible work arrangements and remote work options are becoming key drivers for the need for temporary staffing solutions. Companies are adapting to employee preferences by utilizing virtual hiring platforms and advanced multimedia networking tools to manage remote hiring and teams.
In May 2020, Ogram, a UAE-based on-demand staffing platform, secured US$ 870,000 in a pre-Series A funding round led by Global Ventures. This platform addresses staffing challenges such as expensive onboarding processes for temporary workers, short-notice staff availability issues, and limited access to dependable personnel in sectors like hospitality, e-commerce, food & beverages, and logistics. A report from Career Junction, which provides insights into salary levels and labor supply in South Africa, noted a 32% increase in recruitment activity from April 2021 to April 2022, indicating a robust hiring trend in the staffing sector.
The on-demand staffing platform market is categorized based on deployment, enterprise size, and geographical location. In terms of deployment, the market is divided into on-premise and cloud-based solutions. By enterprise size, it is segmented into small & medium enterprises and large enterprises.
Geographically, the on-demand staffing platform market is segmented into North America (including the US, Canada, and Mexico), Europe (covering Germany, the UK, France, Italy, Russia, and the Rest of Europe), Asia Pacific (including Australia, Japan, South Korea, India, China, and the Rest of APAC), the Middle East and Africa (MEA) (including Saudi Arabia, the UAE, South Africa, and the Rest of MEA), and South America (SAM) (including Brazil, Argentina, and the Rest of SAM).
The overall analysis of the on-demand staffing platform market has been derived from both primary and secondary research methods. Extensive secondary research has been conducted using both internal and external sources to gather qualitative and quantitative data related to the market. This process also provides an overview and forecast for the on-demand staffing platform market across all segments. Additionally, numerous primary interviews have been conducted with industry participants to validate the data and gain deeper analytical insights. Participants include industry experts such as VPs, business development managers, market intelligence managers, national sales managers, external consultants, valuation experts, research analysts, and key opinion leaders specializing in the on-demand staffing platform market.