The global outplacement market bounced back in 2022 following a sharp decline in 2021, according to SIA’s Outplacement Landscape 2023 report. A robust economic downturn is by far the strongest driver of demand for outplacement services, but the levels of government support given to organizations to keep workers furloughed rather than laid off during the 2020 Covid-19 downturn hindered outplacement firms’ ability to capitalize on economic weakness as would normally be expected.
While outplacement firms have worked hard to diversify their businesses and take advantage of less cyclical revenue streams, the majority of their revenue is still closely tied to company layoffs. However, aside from the vagaries of the economic cycle, there are a number of important drivers that suggest outplacement has growth potential in the longer term.
Outplacement demand drivers
Source: Outplacement Landscape 2023
