Africa Staffing and Recruitment Market is expected to reach US$ 32.18 Billion by 2031

Increasing Adoption of Remote Working and Hybrid Business Models Fuel Africa Staffing and Recruitment Market Growth During Forecast Period

According to our latest study, “Africa Staffing and Recruitment Market Size and Forecast (2021–2031), Global and Regional Share, Trend, and Growth Opportunity Analysis – by Type, Recruitment Channel, End User, and Country," the market was valued at US$ 16.50 billion in 2023 and is expected to reach US$ 32.18 billion by 2031; it is estimated to record a CAGR of 8.7% from 2023 to 2031. The Africa staffing and recruitment market report includes growth prospects owing to the current Africa staffing and recruitment market trends and their foreseeable impact during the forecast period.    

The impacts of the COVID-19 crisis shifted consumer preference toward remote or hybrid work approaches. In Africa, many companies are allowing employees to work from home, which led to successful business outcomes. As organizations increasingly adapt to flexible work arrangements such as remote working, there is a significant shift in the way talent is sourced, managed, and deployed. This evolution presents a unique opportunity for recruitment agencies and employers across the region to capitalize on a broader talent pool and enhance operational efficiency. Organizations can tap into freelance and contract-based talent, allowing them to scale their workforce in response to fluctuating demands without the long-term commitment associated with permanent hires. This flexibility reduces overhead costs as well as enhances operational agility. In June 2024, Venture Workspace conducted a study of 94 African and South African businesses, and the results suggest that 60% of the respondents had adopted the hybrid work paradigm, choosing hybrid spaces as their new workplaces.

Africa Staffing and Recruitment Market Analysis — by Geography

Source: The Insight Partners Analysis

The rising adoption of remote and hybrid working models mandates companies to create/adopt staffing and recruitment protocols for generating job offers, recruiting appropriate candidates, and hiring and onboarding new candidates regardless of where they live. Furthermore, remote and hybrid working helps businesses reduce overhead costs regarding traditional office space. An efficient staffing and recruitment solution helps employers lower the costs associated with hiring processes such as advertising, administrative, and traveling expenses. Staffing agencies offer temporary, contract, and freelance workers as per the company’s needs. This employment flexibility is particularly valuable in a remote work environment where entrepreneurs commonly require project-based or seasonal workers. This, in turn, helps in lowering the staffing and recruitment costs to the agencies as well as the companies. Therefore, the growing adoption of remote working and hybrid business models is expected to present a significant opportunity for the Africa staffing and recruitment market growth during the forecast period.

The report includes Africa staffing and recruitment market forecast by staffing type, recruitment channel, and end user from 2022 to 2030. Based on staffing type, the market is divided into temporary and permanent. The temporary segment held a larger Africa staffing and recruitment market share in 2023. In terms of recruitment channel, the market is segmented into online, hybrid, and offline. The online segment held the largest Africa staffing and recruitment market share in 2023.

The scope of the Africa staffing and recruitment market report focuses on Africa (Kenya, Nigeria, the Democratic Republic of Congo, Tanzania, Zambia, Nigeria, Egypt, and the Rest of Africa). The market is experiencing dynamic growth owing to the rise in job vacancies across various sectors. As businesses expand and new industries emerge, the demand for skilled labor is escalating, prompting organizations to seek external recruitment solutions to fill these roles efficiently. Uganda is one of the world's youngest countries, with a median age of 15.9 years. Each year, over 700,000 young people in Uganda enter working age. This is predicted to increase to an average of one million during 2030–2040. As per the World Bank Group, it is anticipated that an additional 13 million people will enter the labor force by 2030.

In December 2023, The World Bank authorized the Kenya Jobs and Economic Transformation Project (KJET), which aims to create or increase work possibilities for at least 45,000 Kenyans, including 6,800 women. KJET seeks to boost private sector investments, market access, and long-term financing to develop and strengthen job opportunities. The initiative aims to help Kenya's Jobs and Economic Transformation (JET) program.

With US$ 150 million in funding, KJET will offer business development services targeted at developing sustainable value chains and linking micro, small, and medium-sized companies (MSMEs) to markets, as well as investments in firms to boost productive capacity and skills. As a result, these actions will boost enterprises' capacity and efficiency, leading to more employment and higher worker productivity. Thus, such initiatives and projects related to economic transformation are likely to have a significant impact on the Africa staffing and recruitment market forecast in the next few years.

Contact Us
 
Phone: +1-646-491-9876
Email Id: sales@theinsightpartners.com