Since the first edition of this report was published in 2002, the online recruitment market has seen significant changes. The economic downturn of 2001-03 markedly affected both revenue streams and the supply structure of the industry. In 2002, for instance, revenues actually fell by nearly 20%, while at the same time record numbers of job seekers were posting resumes to recruitment websites. This began to turn around in 2003, and revenues for 2003 and 2004 are at or above 2001 levels. The revenue outlook is good, as more and more companies and job seekers move their career advertising online. According to industry experts, 96% of Fortune 500 companies now use some sort of online recruitment process. Industry compound annual growth rate through 2008 is expected to be at around 22%.
The poor economy drove many recruitment sites into bankruptcy or out of business altogether, creating an opportunity for larger players to acquire or affiliate with the remainder. The outcome has been the emergence of an industry dominated by three major players: Monster, CareerBuilder and Yahoo! HotJobs, which together account for about 55% of revenues. The remainder is accounted for by a plethora of smaller, industry- or sector-specific sites that appeal to a specialized clientele--the big three are thus actually losing some ground to these niche sites.
The economy is showing signs of a recovery, though job growth remains slower the corporate growth and unemployment has remained at a relatively fixed rate over the past year. Online recruitment, however, is positioned to grow more quickly than other economic sectors. Jupiter Research has predicted that online advertising overall will exceed $16 billion by 2008, adding more than $10 billion from the industrys total revenues today. Recruitment advertising will likely be the single largest segment of this sector.
This report uses the terms "e-cruiting," "e-recruitment" "online recruitment" or "web recruitment" to describe companies within the market. This includes companies that post job listings for a fee and/or advertising revenue, whether the type of employment is for temporary, permanent or contract positions. The format is similar to that of classified sections in print ads. This also includes companies that allow organizations to view resume or profile online databases of potential clients for a fee.
Contents
INTRODUCTION AND ABBREVIATIONS
- Introduction
- Other relevant reports
- Definition
- Abbreviations & Terms
- Abbreviations
- Terms
EXECUTIVE SUMMARY
- Market enters new growth phase
- Consolidation and specialization
- Labor, technology trends drive the market
- New networking opportunities
- A rapidly growing market
- Big Three vs. niche players
- Competition for qualified candidates
- Consumers seek job information and options
- Technological advances fuel future trends
MARKET DRIVERS
- Introduction
- Most Americans on hunt for new job
- Labor force trends
- Employment rates sluggish
- Competition for available jobs remains stiff
- Low average job tenure means ongoing need for convenient job search tool
- Trends in corporate hiring practices
- Figure 1: Share of Internet versus traditional hiring sources, 2002-2004
- Graph 1: Share of Internet versus traditional hiring sources, 2004
- Figure 2: Total newspaper employment classified advertising expenditures, at current and constant prices, 1999-2004
- Graph 2: Total newspaper employment classified advertising expenditures, at current and constant prices, 1999-2004
- Job seekers
- Figure 3: Total online r駸um駸, at current and constant numbers for the U.S. recruitment market, 1999-2004
- Graph 3: Total online r駸um駸, at current and constant numbers for the U.S. recruitment market, 1999-2004
- Trends in the staffing industry, including online recruiting
- Demographic factors
- Figure 4: U.S. population by generation, 2005
- Hispanics a prime target
- Figure 5: U.S. population by race and Hispanic origin, 2000-2010
- Figure 6: U.S. population by age and race/Hispanic origin, 2005
- Figure 7: Labor force participation, by age and race/Hispanic origin, 2003
- A more cost effective recruiting tool
- Convenience and efficiency
- Benefits to employers
- Benefits to job seekers
- The spread of technology
- PC market penetration
- Figure 8: Household ownership of personal computers, 2001-2004
- Internet access and broadband connections
- Graph 4: Internet access trends, by type of access, online U.S. households, 2003 & 2004
- Rise of new online communications channels
- Social networking
- Figure 9: Leading social networking websites
- Blogs
- Privacy and security concerns
- Figure 10: Attitudes about job hunting, online and offline, August 2004
MARKET SIZE & TRENDS
- Figure 11: U.S. Online recruitment advertising and membership revenue, at current and constant prices, 1999-2004
- Graph 5: U.S. Online recruitment advertising and membership revenue, at current and constant prices, 1999-2004
MARKET SEGMENTATION
- Figure 12: Total spending on Internet recruitment, segmented by revenue source, 2002-2004
SUPPLY STRUCTURE
- Introduction
- Recruitment company competition and trends
- Sales and market share
- Figure 13: Annual U.S. online recruitment advertising revenue, 2002-2004
- Graph 6: Annual U.S. online recruitment advertising revenue, 2004
- Company Profiles
- Monster.com
- CareerBuilder.com
- Yahoo! HotJobs.com
- Other online recruiting sites
- 6FigureJobs.com
- Americas Job Bank (AJB)
- BrilliantPeople.com
- Careersite.com
- Computerjobs.com
- ConstructionJobs.com
- Craigslist.com
- DirectEmployers
- Employment911.com
- Futurestep
- GoJobs.com
- Hcareers.com
- Kforce.com
- Net-Temps.com
- Techies.com
- TrueCareers.com
- Vault.com
ADVERTISING & PROMOTION
- Introduction
- Internet advertising trends
- Advertising & promotional activities among online recruiters
- Monster
- CareerBuilder
- Yahoo! HotJobs
- Niche sites
THE CONSUMER
- Introduction
- Recent usage of online job searching
- Figure 14: Online job search in last 30 days, May 2003-April 2004
- Frequency of recent online job searching
- Figure 15: Frequency of online job searching in last 30 days, May 2003-April 2004
- Figure 16: Frequency of online job searching in last 30 days, by employment status, May 2003-April 2004
- Figure 17: Employed respondents frequency of online job searching in last 30 days, by gender, May 2003-April 2004
- Figure 18: Unemployed respondents frequency of online job searching in last 30 days, by gender, May 2003-April 2004
- Figure 19: Employed respondents frequency of online job searching in last 30 days, by age, May 2003-April 2004
- Figure 20: Unemployed respondents frequency of online job searching in last 30 days, by age, May 2003-April 2004
- Figure 21: Employed respondents frequency of online job searching in last 30 days, by household income, May 2003-April 2004
- Figure 22: Unemployed respondents frequency of online job searching in last 30 days, by household income, May 2003-April 2004
- Figure 23: Employed respondents frequency of online job searching in last 30 days, by presence of children, May 2003-April 2004
- Figure 24: Employed respondents frequency of online job searching in last 30 days, by race/Hispanic origin, May 2003-April 2004
- Internet users use of online recruiting sites
- Figure 25: Use of online recruitment sites for information or applying for a job, August 2004
- Internet users attitudes about job hunting
- Figure 26: Attitudes about job hunting, online and offline, August 2004
- Figure 27: Attitudes about job hunting, online and offline, August 2004
- Outcome of online job hunting
- Figure 28: Outcome of online job hunting, August 2004
- Figure 29: Outcome of online job hunting, by age, August 2004
- Figure 30: Outcome of online job hunting, by household income, August 2004
- Figure 31: Outcome of online job hunting, by region, August 2004
- Figure 32: Outcome of online job hunting, by educational attainment, August 2004
- Job sites visited
- Figure 33: Job sites visited, August 2004
- Type of job searched for
- Figure 34: Types of jobs searched for, August 2004
- Localized search or willingness to relocate
- Figure 35: Search for local or jobs requiring relocation, August 2004
- Conclusion
FUTURE & FORECAST
FUTURE TRENDS
- Introduction
- Broadband changes everything, again
- Expanded use of blogging and social networking
- New search and tracking technologies
- End of the browser?
- Highest growth careers
- "Shopping" for jobs
- Producing qualified candidates
MARKET FORECAST
- Online recruitment advertising/membership revenue
- Figure 36: Forecast of U.S. online recruitment advertising/membership revenue, at current and constant prices, 2004-2009
- Graph 7: Forecast of U.S. online recruitment advertising/membership revenue, at current and constant prices, 2004-2009
- Forecast Factors
APPENDIX: TRADE ASSOCIATIONS
APPENDIX: RESEARCH METHODOLOGY
- Consumer Research
- Sampling & Weighting
- Presentation & Definition
- Further Analysis
- Trade Research
- Informal trade research
- Formal trade research
- Desk & Internet Research
- Sources
- Definitions
- Forecasts
APPENDIX: WHAT IS MINTEL?
- Mintel Reports
- Global New Products Database
- Comperemediaｮ
- Mintel Services
- POS+
- Mintel Consultancy
