Report : Employment Screening Services Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Services (Background Check, Verification, and Medical & Drug Testing), End-Use Industry (IT & Telecom, BFSI, Government Agencies, Travel & Hospitality, Manufacturing, Retail, Healthcare, and Others), and Organization Size (SMEs and Large Enterprise)
According to the new research report titled “Employment Screening Services Market Forecast to 2028 – COVID-19 Impact and Global Analysis,” published by The Insight Partners, the market is expected to reach US$ 6,390.09 million by 2028, registering a CAGR of 5.5% from 2021 to 2028.
demand for time efficient selection systems owing to rising number of job applicants is boosting the employment screening services market growth. The 21st century has witnessed a huge influx of population in the urban cities of developed and developing economies in search of a better life. Higher living standards, higher job opportunities, and access to modern amenities and services are a few major factors that have contributed to the migration of rural population to the urban areas across the world. Thus, there was a rise in disposable incomes of consumers. According to the World Bank, today, over 50% of the population lives in urban areas worldwide. By 2045, the world's urban population would increase by 1.5 times and reach 6 billion. As urbanization has increased and will continue to grow in the coming years, the need for the job creation in urban areas would also grow at full throttle. A competitive region enables its industries and firms to create job opportunities, raise productivity, and increase incomes of citizens.
Furthermore, the number of applicants applying for a job in any organization has increased to very high numbers. Selecting the most suitable candidate for a particular profile has become more tedious, and the conventional methods of conducting interviews for job screening are time consuming and inefficient. Thus, the demand for efficient and quicker employee screening systems is increasing by end-use organizations.
The employment screening services market is segmented on the basis of services, end-use industry, organization size, and geography. Based on services, the market is segmented into background check, verification, and medical & drug testing. The verification segment held the largest market share in 2020. Based on end-use industry, the employment screening services market is segmented into IT & telecom, BFSI, government agencies, travel & hospitality, manufacturing, retail, healthcare, and others. The manufacturing segment is projected to register the highest CAGR during the forecast period. Geographically, the global employment screening services market is broadly segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM). In 2020, North America accounted for the significant share in the global market.
The consequent economic downturn, due to COVID-19 outbreak pandemic, has led to the rise in number of jobless candidates across the globe. For instance, in the US, the number of jobless candidates reached 20.5 million in May 2020 from 6.2 million in February 2020. As a result, in 2020, the rate of unemployment was increased from 3.8% in February to 13.0% in May in the US. The rise in unemployment rate continued in April 2020 as well with 14.4%. However, post Q3 of 2020, the number of COVID-19 cases in the US started to fall, which is triggering the gradual normalization of economic activities in the country. This resulted in the rise in demand for products and services across the region. Moreover, with the improved vaccine distribution and administration drives, the US witnessed a more than expected increase in job openings in February 2021. According to a data released by the Job Openings and Labor Turnover Survey (JOLTS), the number of job openings rose to 7.4 million in March 2021 from 7.1 million in February 2021. Nonetheless, the labor market has a long way to go before resuming its late-2019 status. The US hiring rate increased to 4% in February 2021 from 3.8% in February 2020 Thus, despite the steep decline in the first two quarters of 2020, the employment screening services market in North America started experiencing substantial growth as the economy of region started reviving back to normal, leading to the acceleration of hiring processes across industries.
Key Findings of Study:
The global employment screening services market is segmented into five major regions—North America, Asia Pacific (APAC), Europe, the Middle East & Africa (MEA), and South America (SAM). Moreover, several market players adopt significant strategic initiatives. For instance, in 2021, Insperity, Inc., a leading provider of human resources and business efficiency solutions for America's best companies, announced a digital transformation partnership with Salesforce, a global leader in CRM.