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Employment Placement Agencies in Germany - Market Research Report (2015-2030)

Ashkan Salim Ashkan Salim Frankfurt, Germany Last Updated: April 2025 WZ N78.10DE

Revenue

€8.4bn

2025

€8.4bn

Past 5-Year Growth

Profit

€X.Xbn

Employees

55,883

Businesses

4,772

Wages

€X.Xbn

Employment Placement Agencies in Germany industry analysis

The German labour market is currently affected by a significant decline in job vacancies, caused by economic uncertainty and weakening international demand. Sectors such as transport, construction and business-related services are particularly in focus. In light of these challenges, recruitment agencies are being forced to rethink and adapt their recruitment strategies in order to continue to efficiently identify suitable candidates for the few available positions. Creative approaches and the strategic expansion of networks are crucial in order to survive in a dynamic competitive environment and to fulfil the increased expectations of clients under tight economic conditions. On average, sales have increased by 6% per year over the past five years. The profit margin of companies in the sector remains at an extremely high level. In the past five years, efficiency gains have been achieved through the use of social networks such as Xing and LinkedIn.
In 2025, turnover is expected to increase by 1.3% to 8.4 billion euros. At present, recruitment agencies are increasingly focussing on combating the shortage of skilled workers in key economic sectors such as healthcare, IT and construction. Despite economic volatility, the demand for qualified specialists remains high, further underpinning the agencies' role as indispensable partners for companies. In order to fulfil the specific requirements of clients, agencies must increasingly rely on innovative strategies such as active sourcing and the growing use of AI technologies. In addition, an intensification of new client acquisition and the progressive digitalisation of application processes will be unavoidable in order to be able to react in an agile manner to the dynamically developing market requirements.
IBISWorld expects the industry's turnover to grow by an average of 1.8% per year over the next five years, which should generate 9.1 billion euros by 2030. Looking to the future, recruitment agencies must invest more in further training and retraining measures in order to effectively meet the challenges of the skills shortage. Targeted cooperation with educational institutions makes it possible to systematically develop urgently needed expertise in sought-after areas. At the same time, the expansion of international networks remains essential in order to facilitate access to global talent and integrate it efficiently into the German labour market. The increased use of AI-based tools for process optimisation represents a further decisive step towards increasing the performance of recruitment agencies and securing their competitiveness and future viability in the long term.

Trends and Insights

  • By using social networks and intelligent programmes, companies in the sector can achieve efficiency gains. This enables recruitment consultants to identify a higher number of candidates with significantly less work than before.
  • The largest share of turnover is generated by companies in the industry through the placement of employees for senior management. For the future, the industry expects an increasing demand for executives with experience in the areas of digital leadership, agile organisation and environmental economics.
  • The centre region has the highest proportion of companies in the sector. The numerous conurbations in the region are of interest to recruitment agencies, as many international companies and therefore a particularly large number of industry clients are based in the major cities.
  • The recruitment agencies are in competition with the HR departments in the individual companies. Many companies in the sector have therefore focussed on the search for highly qualified executives, which is too time-consuming for in-house HR departments.

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  • Market estimates from 2015-2030
  • Critical performance data and rankings
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Industry Statistics and Trends

Market size and recent performance (2015-2030)

Industry revenue has grown at a CAGR of 6.0 % over the past five years, to reach an estimated €8.4bn in 2025.

Trends and Insights

The number of vacancies is declining, which is prompting recruitment agencies to make adjustments

  • The German labour market experienced a significant decline in job vacancies in the third quarter of 2024, as the survey by the Institute for Employment Research (IAB) shows. 1.28 million job vacancies correspond to a decline of 4% compared to the previous quarter and 26% compared to the same quarter of the previous year. This development is a result of economic uncertainties, including high prices and weak international demand. The sectors particularly affected by this decline are "other services", transport and storage, manufacturing, construction and business-related services.
  • Additional trends and insights available with purchase
Employment Placement Agencies in Germany
Revenue (2015-2030)
IBISWorld Logo Source: IBISWorld

Industry outlook (2025-2030)

Market size is projected to grow over the next five years.

Trends and Insights

Recruitment agencies are likely to focus more on further training in the coming years in order to compensate for imbalances on the labour market

  • The study "Labour and skills shortages despite unemployment" published by the Federal Employment Agency in March 2024 sheds light on the mismatch between the qualifications of the unemployed and the requirements of vacancies in Germany. In 2023, there was an average ratio of almost nine unemployed people per job vacancy, while there were fewer than two applicants per vacancy for qualified skilled workers. This leads to challenges in the placement of qualified employees, as the right qualifications are often lacking despite 2.6 million unemployed people.

Biggest companies in the Employment Placement Agencies in Germany

Company
Market Share (%)
2025
Revenue (€m)
2025
ManpowerGroup Deutschland Verwaltungs GmbH
48.6
Kienbaum und Partner GmbH
33.7
Egon Zehnder International GmbH
33.4

To view the market share and analysis for all 6 top companies in this industry, view purchase options.

Products & Services Segmentation

Employment Placement Agencies in Germany
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Placement of employees for upper management, Placement of employees for middle management and Placement of specialists. Placement of employees for upper management is the largest segment of the Employment Placement Agencies in Germany.

Trends and Insights

The placement of employees for senior management is the most important service segment

  • The placement of employees for senior management includes functions that are directly related to company management, such as positions on the board of directors or in management.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

Recruitment agencies create and place job vacancies and place applicants with companies. A key characteristic of the industry is that the people placed are not employed by the placement companies. Agencies for the placement of artists are not part of the industry, nor are agencies for the placement of temporary workers.

What's included in this industry?

Placement of employees for upper managementPlacement of employees for middle managementPlacement of specialistsPlacement of management staffPlacement of skilled labour

Companies

ManpowerGroup Deutschland Verwaltungs GmbHKienbaum und Partner GmbHEgon Zehnder International GmbH

Purchase this report to view all 6 major companies in this industry.

Related Terms

CV-PARSEREXECUTIVE SEARCHHOTDESKINGJOBSHARINGRECRUITER/HEADHUNTERREMOTE WORK

Industry Code

WZ 2008

WZ 78.10 - Employment Placement Agencies in Germany

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

By using social networks and intelligent programmes, companies in the sector can achieve efficiency gains. This enables recruitment consultants to identify a higher number of...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2015-2024) and forecast (2025-2030)
  • Employees, including historical (2015-2024) and forecast (2025-2030)
  • Businesses, including historical (2015-2024) and forecast (2025-2030)
  • Profit, including historical (2015-2025)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

The largest share of turnover is generated by companies in the industry through the placement of employees for senior management. For the future, the industry expects an incr...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2025
  • Product innovation level

Charts

  • Products & services segmentation in 2025
  • Major market segmentation in 2025

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

The centre region has the highest proportion of companies in the sector. The numerous conurbations in the region are of interest to recruitment agencies, as many internationa...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2025

Tables

  • Number and share of establishments in each region in 2025
  • Number and share of revenue each region accounts for in 2025
  • Number and share of wages each region accounts for in 2025
  • Number and share of employees in each region in 2025

Detailed analysis

  • Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

The recruitment agencies are in competition with the HR departments in the individual companies. Many companies in the sector have therefore focussed on the search for highly...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2020-2025
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

There are no major players in the industry. There are almost no barriers to market entry, which is why many small companies are active in the market.

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2021 through 2025
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2025
  • Overview of ManpowerGroup Deutschland Verwaltungs GmbH's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of Kienbaum und Partner GmbH's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of Egon Zehnder International GmbH's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of revenue, market share and profit margin trend for 3 additional companies

Detailed analysis

  • Description and key data for ManpowerGroup Deutschland Verwaltungs GmbH, and factors influencing its performance in the industry
  • Description and key data for Kienbaum und Partner GmbH, and factors influencing its performance in the industry
  • Description and key data for Egon Zehnder International GmbH, and factors influencing its performance in the industry
  • Description, key data and performance trends for 3 additional companies

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

Contractual agreements with clients often include so-called no-touch regulations. Recruitment agencies receive a lot of information about the client during an assignment and ...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2015-2030) 
  • Assistance historical data and forecast (2015-2030) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

The profit margin of companies in the sector is at a high level for the time being. The shortage of staff in the economy is likely to worsen in the coming years, resulting in...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2015-2030)
  • Revenue per Employee (2015-2030)
  • Revenue per Enterprise (2015-2030)
  • Employees per Establishment (2015-2030)
  • Employees per Enterprise (2015-2030)
  • Average Wage (2015-2030)
  • Wages/Revenue (2015-2030)
  • Establishments per Enterprise (2015-2030)
  • IVA/Revenue (2015-2030)
  • Imports/Demand (2015-2030)
  • Exports/Revenue (2015-2030)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2015-2030)
  • IVA (2015-2030)
  • Establishments (2015-2030)
  • Enterprises (2015-2030)
  • Employment (2015-2030)
  • Exports (2015-2030)
  • Imports (2015-2030)
  • Wages (2015-2030)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Employment Placement Agencies industry in Germany in 2025?

The market size of the Employment Placement Agencies industry in Germany is €8.4bn in 2025.

How many businesses are there in the Employment Placement Agencies in Germany industry in 2025?

There are 4,772 businesses in the Employment Placement Agencies industry in Germany, which has grown at a CAGR of 5.2 % between 2020 and 2025.

How may import tariffs affect the Employment Placement Agencies industry in Germany?

The Employment Placement Agencies industry in Germany is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.

How may export tariffs affect the Employment Placement Agencies industry in Germany?

The Employment Placement Agencies industry in Germany is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.

Has the Employment Placement Agencies industry in Germany grown or declined over the past 5 years?

The market size of the Employment Placement Agencies industry in Germany has been growing at a CAGR of 6.0 % between 2020 and 2025.

What is the forecast growth of the Employment Placement Agencies industry in Germany over the next 5 years?

Over the next five years, the Employment Placement Agencies industry in Germany is expected to grow.

What are the biggest companies in the Employment Placement Agencies market in Germany?

The biggest companies operating in the Employment Placement Agencies market in Germany are ManpowerGroup Deutschland Verwaltungs GmbH, Kienbaum und Partner GmbH and Egon Zehnder International GmbH

What does the Employment Placement Agencies in Germany include?

Placement of employees for upper management and Placement of employees for middle management are part of the Employment Placement Agencies industry.

Which companies have the highest market share in the Employment Placement Agencies in Germany?

The company holding the most market share in Germany is ManpowerGroup Deutschland Verwaltungs GmbH.

How competitive is the Employment Placement Agencies industry in Germany?

The level of competition is high and increasing in the Employment Placement Agencies industry in Germany.

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Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in Germany include:

  • German Federal Statistics Office (Destatis)
  • European Statistics Office (Eurostat)
  • United Nations Comtrade

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

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