21 November 2013

Optimism abounds in the UK Recruitment Market

After six years of relentless bad news coming out of the UK recruitment sector it looks like the tide has turned.

UK-based Recruiter website has reported on information released from the Recruitment & Employment Confederation's (The UK equivalent to the RCSA) Recruitment Industry Trends Survey 2012/13.

Here are the major findings:

Total recruitment industry sales
£26.5 B
+3.1% on 2011/12 result and
+35% on 2009/10
No. of permanent placements
+ 12.1% on 2011/12 result
Permanent placement sales
£2.4 B
+ 2.2% on 2011/12 result
Average perm fee
-9.6% on 2011/12 result
Average annual perm fees per consultant
= Approx AUD $145,000
Average daily temps working
1.13 M
+ 2.0% on 2011/12 result
Temporary placement sales
£24.1 B
+3.2% on 2011/12 result
Average number of daily temps working per consultant
+1% on 2011/12 result
Top 4 job types for perm placements
1.      Accounting/financial (19.8% of all perm placements)
2.      Business Support (18.1%)
3.      Other (15.2%)
4.      IT (11.1%)
Top 4 job types for temp placements
1.      Other Industrial/Blue Collar (21.4% of all temp placements)
2.      Business Support (14.9%)
3.      Technical/engineering (12.9%)
4.      IT (8.9%)
Total recruiters employed by UK agencies
64,669 (38% temp/contract only, 33% perm only,
29% dual desk)

The result that I was especially heartened by was the REC's forecasts that suggest total industry growth of over 25% between now and 2015-16 is realistic.

Supporting this optimism is a stream of positive economic news coming out of the UK, reported by Deloitte last week, which suggest that within ten months, the UK has gone from being one of the rich world's growth laggards to being one of its stronger performers.

Deloitte also reported that (i) since February, economists have raised their forecasts for UK growth next year more quickly than for any other big, industrialised country, (ii) in the second and third quarters of this year, the UK economy grew at above-trend rates and at the fastest pace in three years and (iii) The European Commission predicts that the UK will be Europe's fastest growing major economy for the next two years.

Given the UK recruitment industry's 2012/13 sales result was still below the pre-recessionary peak of £27 billion there's a lot to be optimistic about, mirroring the very positive blog posted by Greg Savage, three months ago, after his recent visit to speak to a group of UK recruitment agency owners.

Let's hope the positive news out of the UK continues and we see the same momentum in the Australian recruitment market in early 2014.

1 comment:

  1. Hmmmm - Number of placements up average fees down