As many workers around the world brace for layoffs in the coming year, outplacement firms are poised to benefit from the rising demand for their services. SIA estimates that the global outplacement market is set for a 12% growth in 2022, with revenue reaching USD 2.0 billion following a 24% decline in 2021. A strong 2023 is expected to further drive the market’s recovery and surpass pre-pandemic levels.
The three largest outplacement vendors, LHH, Right Management from Talent Solutions and Randstad RiseSmart, will continue to dominate the landscape. These firms provide short- or long-term counseling and support services, both on an individual or group basis, to help terminated employees land a satisfactory new job. The services are typically paid for by the terminating employer.
With the global economy likely to remain fragile, the demand for outplacement services is expected to remain strong well into 2024. Outplacement firms are well-positioned to capitalize on this trend and ease the transition of workers affected by layoffs in the coming year.