A rise in outplacement across Europe: responding to transformations within the labour market

The world is changing. Being adaptable to shifting trends and changing circumstances is key when faced with an uncertain job market. Contrasting developments across Europe are coming to the fore, delineated by restructuring in the retail and industry sectors, as well as growth in green technology. The way forward for companies and outplacement providers, such as Careerminds, is to remain flexible in order to support professionals going through career transitions.

What are the recruitment trends and prospects across Europe? How well does outplacement provision support those members of the workforce who are facing economic layoffs? Find out what is happening in the UK, France, the Netherlands, and Germany, with data from Careerminds’ comprehensive study into the outplacement market.

In 2024 there was an evolution of the labour market across Europe, driven by transformations in the economy, technology, and regulations. According to the Office for National Statistics, between October and December 2024, the UK employment rate increased to 74.9%, while the unemployment rate rose to 4.4%.

Post-Brexit uncertainties and inflation led to fluctuations in hiring, specifically in manufacturing and the financial services sector, with businesses continuing to adjust their workforce in line with economic developments.

In other countries in Europe, we find:

• France – the unemployment rate was 7.4% at the end of 2024, with renewable energy, technology, and the service sector continuing to grow while others, including retail and manufacturing, face major restructuring. This dynamic is forcing the government and companies to strengthen systems which support transitions, particularly in the outplacement service sphere.
• The Netherlands – a strong demand for qualified professionals in finance, technology, and business services benefits the labour market, with a rise in growth in recruitment supported by digitalisation and innovation.
• Germany – tensions within supply chains, combined with energy costs, means the manufacturing industry is slowing down. On the bright side, the rise of renewable energy is boosting employment, particularly across engineering and sustainable development.

There have been notable fluctuations in redundancy patterns and hiring over the past few years, due to economic conditions, the pandemic, and evolving business needs. The impact of Brexit reforms lingers on, which could still affect hiring in 2025 – particularly in the financial sector.

Because of this, the benefits of providing outplacement to affected employees will play an integral role, steering impacted employees towards more promising sectors. 

The expansion in value-added sectors is predicted to continue in 2025, with an increased demand for skills in the technical arena.

If the predicted recovery of the manufacturing sector is to happen, it will need to rely on evolution of the global economy, as well as the adaptability of companies leaning into new industry dynamics.

The outplacement process is designed to help employees who find themselves being offboarded due to redundancy into new positions, while taking into account their mental health. Due to economic changes, outplacement services are seeing strong growth across Europe.

The outplacement market represents €1.6bn in Europe, with the potential to reach €2.24bn by 2030. In the UK, the market for outplacement services remains promising, with a projected compound annual growth rate (CAGR) of 5.76% from 2024 to 2030.

A report carried out by MarkWide Research on outplacement services between 2025 and 2034 for the UK reveals that, “the UK outplacement services market is expected to experience steady growth in the forecast period, due to increased awareness among employers about the importance of providing support to displaced employees.”

In order to support employees at the highest level, outplacement services need to provide:

• Virtual coaching – 1-2-1 sessions that can be accessed remotely
• Outplacement until placement – where employees are supported throughout the whole transition process, until they find a new role
• Online training – further developing technical and behavioural skills, essential in an ever-changing job market
• Human interaction – so that affected employees always know there is someone they can connect with, to provide psychological and professional support

A programme through Jobcentre Plus provides support to companies and departing employees by providing help with writing CVs, sharing general information on benefits, and steering those in need towards relevant training and learning new skills. The scheme can also provide on-site support for larger scale redundancies.

Check out the below points from the other countries in the study: 

• France – outplacement services are normally included in support given to employees as part of a Job Protection Plan (PSE) and Professional Security Contract (CSP). The French government plays a vital part through France Travail, supporting employees during career transitions.
• The Netherlands – there is strong support for retraining, with public subsidies encouraging adaptation to new labour market dynamics.
• Germany – mechanisms are in place that support requalification, specifically in engineering and the motor industry, where changes may require transition to emerging sectors.

The wellbeing of employees during transition periods is paramount, so keeping an eye on any mental health issues, and offering 360 degree support where needed, should be the norm. In the UK in 2024, 25% of workers felt unable to cope with workplace stress, according to a report from MHFA England. It goes on to state that signs of employee burnout are on the rise, with, “63% of UK employees showing symptoms like exhaustion and disengagement, up from 51% two years ago.”

The fluidity of the job market means there is more scope for laid-off employees to embrace alternatives to traditional employment, such as becoming a freelancer or starting up a business. Currently, 1 in 6 adults in the UK work a gig job, according to a 2024 gig economy study.

Outplacement services are starting to adapt to this by providing support that will help people to get on the right track, such as identifying the skills needed.

With the job market shifting, and the arrival of new technologies and AI, job seekers need to develop and improve their skills in order to seize the opportunities available in these growing sectors. 

Outplacement services place a strong reliance on skill development to accelerate the return to employment through intensive retraining programmes.

An increasing focus for companies is on sustainability and corporate social responsibility practices, with UK outplacements services aligning their products to fit. This means facilitating transitions towards the ever-growing green sector, as well as promoting environmentally friendly practices.

The labour market is evolving rapidly in Europe, due to restructurings, new economic dynamics, and the rise of technology. Some sectors, such as renewable energy and technology, create opportunities, while others, including retail and manufacturing, are undergoing major changes.

At the heart of all of this adjustment is the provision of outplacement services, which play an important role helping affected employees to bounce back during market changes. Outplacement adapts to the new needs of workers by concentrating on the development of skills, retraining into growth sectors, and orientating towards promising professions.

Outplacement is also finding ways to adapt to the growth of entrepreneurship, the focus on employee well-being, and the transition to a more sustainable economy.

For a detailed analysis of trends, prospects, and developments in the outplacement market in Europe, check out the full study.

If your organisation is considering outplacement services, contact us at the earliest opportunity to find out more.