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UK Recruitment to top pre-recession figures by the end of 4th quarter of 2013

Posted by Ifan | Posted in Agency, Blog, News | Posted on 06-11-2013

UK Recruitment to top pre-recession figures by the end of 4th quarter of 2013

There have been many signs that our economy is on the mend this year, but no signs have been more affirming than recent figures indicating that the recruitment industry is not only thriving, but is set to improve upon pre-recession figures. According to the Recruitment and Employment Confederation’s (REC’s) latest survey, recruitment industry turnover reached £26.5 billion in 2012/13, while growth jumped to 3.1% since 2011/12. Assuming that this trend continues, growth for the industry will increase to 7.3% by 2013/14, 8.3% in 2014/15 and 9.6% in 2015/16. This is a most reassuring improvement over British recruitment industry’s pre-recession peak of £27 billion and achieve a turnover of £28.5 billion by the end of March next year.

The 2012/13 market value of £26.5 billion is comprised of £24.1 billion (91%) from temporary/contract business and £2.4 billion (9%) from permanent recruitment activity. The year-on-year increase in revenue exceeds the 2% growth predicted. This has been achieved via a 12% increase in permanent recruitment volumes and a 2% increase in temporary and contract staffing volumes.

Other key findings from the Recruitment Industry Trends Survey 2012/13 include:

  • The percentage of job-hunters who secured permanent positions through recruitment agencies rose by 12% in 2012/2013 compared to 2011/2012.
  • The previous headline of mass unemployment that has characterised the recession has been replaced with the issue of skills shortage due to the rapid increase in vacancies – what a wonderful problem to have!
  • There are 1.1million agency workers fulfilling temporary roles in workplaces across the UK at any time, about 4% of the total workforce. On average, each consultant working in temp/contract staffing had 32 people on assignment on any given day.
  • Headcount within the recruitment industry increased by just 0.9% to 93,610. This marks the third consecutive annual increase in the number of people working in the recruitment industry, but the new total is still below the pre-recession figure of 108,833 in 2007/08.
  • Commenting on the report, REC chief executive Kevin Green says:
    “The year to April 2013 saw growth for both temporary and permanent recruitment, with the temporary/contract market achieving its highest annual turnover since records began.
    “Recruiters are resilient and in difficult times have been working harder to deliver more for less, to cost-conscious clients. We’ve seen the market mature, with consolidation by large and medium sized businesses acquiring smaller operators, and the remaining small agencies have had to carve out specialist niches in order to survive.

    “As the recovery gathers pace, the difficult restructures that firms have put themselves through, including significant numbers of branch closures, could begin to deliver impressive dividends. As revenue grows, efficiencies will deliver margin improvements and increased profit. This is why we have upgraded our growth forecast to 7.3% by the end of this year and are predicting even greater acceleration in the following two years.”

    We at Redego Umbrella welcome this latest trend and hope that British employment will continue to prosper.