Temporary Staff Services in New Zealand - Industry Market Research Report

Temporary slowdown: Growing unemployment, inflation and interest rates temper demand and revenue

Volatility has been the name of the game for Temporary Staff Services industry in recent years. Staffing businesses have had to contend with negative business confidence and the effects of the COVID-19 outbreak. Mixed demand for temporary staff from key downstream markets has also hindered growth. Government-mandated shutdowns across many sectors to limit the spread of COVID-19 reduced companies' requirements for a range of employees, including temporary staff supplied by agencies. While a lower national unemployment rate for most of recent history has benefited temporary staff service firms, the COVID-19 outbreak dented demand and revenue in 2020-21 and harmed profit and employment through 2022-23. Industry revenue is expected to increase at an annualised 1.0% over the five years through 2022-23, to $2.2 billion, declining 3.3% in 2022-23 due to negative business confidence and subdued construction activity.

Industry operators primarily provide casual, short-term and other temporary staffing solutions on a contract or fee basis. Although temporary staff service firms provide staff to client businesses, the workers are legally employed by the temporary staff provider.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.