The recruiting industry’s history dates back to ancient Greek, Egyptian and Roman civilizations. The employment/recruiting activities began with the military but the birth of modern employment agencies did not occur until the 1940’s because of World War-II. Employment agencies at that time began to advertise for workers who were not required to do military service in an effort to fill up the gaps in the workplace left by those who were called to serve military services. The end of the war led to rapid increase of workers returning from the army that lead to emergence of new skills.
In the present scenario, the professional recruiting industry is a challenging environment with much lot of radical transformations occurring. The financial crisis of 2000 has stirred up the traditional recruiting industry with significant work force changes. Nevertheless, the United States Department of Labor opines/estimates that the recruitment industry will increase by more than 50% in 2014. Even some corporate entities predict that the growth in the recruitment industry would be closer to 70% as any vacancy in the job would necessitate the demand for employment agencies or recruitment firms to help the employer in finding a replacement.
The dynamics of the recruitment industry has changed due to emergence of internet with important vendors dominating the online recruitment market space that include Indeed.com, LinkedIn, Career Builder.com, Monster.com and many others. Skilled professionals are now searching job listings online by using the recruitment websites. The online recruitment market space is now growing quickly with the emergence of social networking platforms such as Facebook, Twitter etc. However, importance of the traditional brick and mortar recruitment agencies still exists as they are the major resource for companies that need to locate top talent in the their specific industry, discipline and market sector.
In spite of the recruitment industry revenue share being eaten up by the social networking platforms such as LinkedIn, the recruitment companies still contributes a major portion of revenue to the professional recruitment industry. According to some sources, the real worth of the recruiting industry is over $120 billion if all services related to employers and job seekers are taken into consideration. Even though the internet has changed and caused a major upheaval within the recruitment industry, the effects of it are marginal. Presently, the recruitment industry has four types of agencies and these are employment agencies, job search engines, recruitment websites and headhunters. Thus, it can be said that recruitment industry is still playing an important role towards the growth of American economy.