New data from the Recruitment and Employment Confederation (REC) has revealed that the recruitment industry has surpassed its pre-recession peak with total annual revenues hitting an impressive £28.7 billion.
This figure is 6.3% higher than the previous record and means that the value of the jobs industry has grown by an impressive 8.2% compared to the previous period. Head of the REC, Kevin Green commented:
“The recruitment industry is the driving force behind the UK’s labour market recovery. The impact that recruiters have on both people’s lives and our nation’s businesses is one of the reasons why we have record employment and unemployment falling at unprecedented speed.”
According to the industry trade body’s analysis, 630,000 people were helped to find a permanent job during the period and on any given day, 1.15 million individuals were working on a temporary or contract assignment which they secured via a recruitment agency.
The interim market has continued to enjoy steady growth with temporary and contract recruitment making up 91% (£26 billion) of revenue whereas fees from placing people in permanent jobs was just 9% at £2.7 billion.
A trend that was witnessed in both temporary and permanent recruitment was the duration of placements getting longer – 13% of recruitment agencies reported that the jobs they were finding for candidates is on the rise.
The top five industries for permanent jobs being found include:
Secretarial/Clerical – 20.9%
Accounting/Financial – 12.9%
Computing – 12.8%
Technical/Engineering – 12.4%
Professional/Managerial – 10.1%
The top five industries where temporary and contract jobs are being found include:
Other industrial/blue collar – 21.1%
Technical/Engineering – 15.3%
Secretarial/Clerical – 14.5%
Computing/IT – 9.9%
Nursing/Medical Care – 6.1%
An area of concern that the report did highlight is the lack of suitable talent that is available for permanent positions. Mr Green added:
“As the UK jobs market recovers, there are still challenges. Clients are demanding more in a market where skilled candidates are becoming harder to find. New online tools make the work of sourcing and sifting candidates seem easier, but it takes expertise to get the most value from new technologies and recruiters are working harder than ever to source that talent.”
REC is forecasting that the total industry turnover will rise by 9% next year and then 8.7% the following year.
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