Recruitment Agencies (Temporary & Contract) Market Report 2010
Key Note Publications Ltd, February 2010, Pages: 106
This Market Report examines the UK temporary and contract recruitment market. It profiles the major organisations that recruit on behalf of clients for temporary and/or contract positions, including recruitment consultancies, recruitment companies and employment agencies.
In any recession, the recruitment industry is one of the most exposed sectors of the economy, as it depends on a healthy level of employment. The current UK recession is no exception — the temporary and contract staffing sector has seen demand fall in 2008 and 2009, and sales volumes dropped by 12.5% in the year ending March 2009, compared with the same period in the previous year. The market continued to decline until at least September 2009; however, there are said to have been some signs of stabilisation in October.
According to the Recruitment and Employment Confederation (REC), the market for temporary and contract recruitment was worth £19.88bn in the year ending March 2009. All sectors of the industry have been affected by the drop in demand, with the exception of the nursing and medical sector. The hardest-hit categories are: construction; hotel and catering; education; and computing and IT.
Thousands of companies are involved in the recruitment industry, most of which are classed as small to medium-sized enterprises (SMEs). According to Recruitment International magazine, the top-ten UK companies by number of temporary/contract placements in 2009 were: Allied Healthcare; Adecco; Hays; Impellam Group; Pinnacle Staffing Group; Pertemps; Best Connection; Capita Group; Kelly Services; and Morson Group.
The industry is forming itself into increasingly larger groups and, in 2008, there were two major corporate changes: Randstad NV purchased Vedior NV; and Corporate Services Group and Carlisle Group merged to form Impellam Group PLC. These were very significant developments, but they have since been overshadowed by two acquisitions by Adecco — Spring Group PLC and MPS Incorporated — in 2009, further strengthening Adecco’s position as the leading recruitment company worldwide. More company acquisitions are likely in 2010 as recruitment companies are now relatively cheap to buy and more firms are in financial difficulty.
The market will continue to experience difficulties in 2010 as unemployment is always a lagging factor in a recession, even after other aspects of the economy have recovered. If a recovery occurs by summer 2010, recruitment companies are unlikely to feel the full impact of it until 2011. The authors forecast a decline of 7% in the value of the UK temporary and contract recruitment market in the year ending March 2010, but growth of around 2.5% is expected for the following 12 months.
Executive Summary
1. Market Definition
REPORT COVERAGE
MARKET SECTORS
Temporary Recruitment
Contract Recruitment
Industry Sectors
MARKET TRENDS
ECONOMIC TRENDS
Population
Table 1.1: UK Resident Population Estimates by Sex (000), Mid-Years 2004-2008
Gross Domestic Product
Table 1.2: UK Gross Domestic Product at Current and Annual Chain-Linked Prices (£m), 2004-2008
Inflation
Table 1.3: UK Rate of Inflation (%), 2004-2008
Unemployment
Table 1.4: Actual Number of Unemployed Persons in the UK (million), 2004-2008
Household Disposable Income
Table 1.5: UK Household Disposable Income Per Capita (£), 2004-2008
MARKET POSITION
Table 1.6: The Temporary and Contract Staff Recruitment Market’s Share of the Overall Recruitment Market by Turnover (£bn and %), Years Ending March 2005-2009
2. Market Size
THE TOTAL MARKET
By Value
Table 2.1: The Total UK Temporary and Contract Staff Recruitment Market by Turnover (£bn), Years Ending March 2005-2009
Figure 2.1: The Total UK Temporary and Contract Staff Recruitment Market by Turnover (£bn), Years Ending March 2005-2009
By Volume
Table 2.2: Number of Temporary and Contract Placements in the UK, Years Ending March 2005-2009
Figure 2.2: Number of Temporary and Contract Placements in the UK (million), Years Ending March 2005-2009
BY MARKET SECTOR
Accountancy/Financial
Computing/IT
Construction
Driving
Education
Hotel/Catering
Industrial/Blue Collar
Nursing and Other Medical
Professional/Managerial
Secretarial/Clerical
Technical/Engineering
3. Industry Background
RECENT HISTORY
NUMBER OF COMPANIES
Table 3.1: Number of UK VAT- and/or PAYE-Based Enterprises Engaged in Temporary Employment Agency Activities by Turnover Sizeband (£000, number and %), 2009
EMPLOYMENT
Table 3.2: Number of UK VAT- and/or PAYE-Based Enterprises Engaged in Temporary Employment Agency Activities by Employment Sizeband (number and %), 2009
REGIONAL VARIATIONS IN THE MARKETPLACE
HOW ROBUST IS THE MARKET?
LEGISLATION
Employment Agencies Act 1973
Conduct of Employment Agencies and Employment Businesses Regulations 2003
Other Legislation
KEY TRADE ASSOCIATIONS
Association of Executive Search Consultants
Association of Professional Staffing Companies
The Association of Recruitment Consultancies
Recruitment and Employment Confederation
4. Competitor Analysis
THE MARKETPLACE
Table 4.1: Top 20 UK Recruitment Companies by Turnover from Recruitment Activities, 2009
Table 4.2: The Top Ten UK Recruitment Companies by Number of Temporary/ Contract Workers, 2009
MARKET LEADERS
Table 4.3: Leading UK Recruitment Agencies by Total Turnover Including Non-Recruitment Revenue (£000), Latest Financial Results
Adecco UK Ltd
Allied Healthcare Group Ltd
The Best Connection Group Ltd
The Capita Group PLC
Hays PLC
Impellam Group PLC
James Reed & Partners Ltd
Kelly Services (UK) Ltd
Manpower UK Ltd
Michael Page International PLC
Morson Group PLC
Pertemps Ltd
Pinnacle Staffing Group PLC
Randstad Employment Bureau Ltd
Spring Group PLC
SThree PLC
OTHER COMPANIES
MARKETING ACTIVITY
Main Media Advertising Expenditure
Table 4.4: Advertising Expenditure by UK Recruitment Companies (£000), Years Ending September 2008 and 2009
5. Strengths, Weaknesses, Opportunities and Threats
STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS
6. Buying Behaviour
REASONS FOR HIRING TEMPORARY AND CONTRACT STAFF
REASONS FOR USING RECRUITMENT AGENCIES
Choosing a Recruitment Firm
7. Current Issues
MARKET CONDITIONS
CORPORATE ACTIVITY
THE AGENCY WORKERS DIRECTIVE
MANAGING CASH FLOW
8. The Global Market
MAJOR MARKETS
The US and the UK
Europe
9. Forecasts
INTRODUCTION
The Economy
Population
Table 9.1: Forecast UK Resident Population by Sex (000), Mid-Years 2009-2013
Gross Domestic Product
Table 9.2: Forecast UK Growth in Gross Domestic Product in Real Terms (%), 2009-2013
Inflation
Table 9.3: Forecast UK Rate of Inflation (%), 2009-2013
Unemployment
Table 9.4: Forecast Actual Number of Unemployed Persons in the UK (million), 2009-2013
FORECASTS 2010 TO 2014
Table 9.5: The Forecast Total UK Temporary and Contract Staff Recruitment Market by Turnover (£bn), Years Ending March 2010-2014
MARKET GROWTH
Figure 9.1: The Forecast Total UK Temporary and Contract Staff Recruitment Market by Value (£bn), Years Ending March 2005-2014
FUTURE TRENDS
10. Company Profiles
ADECCO UK LTD
ALLIED HEALTHCARE GROUP LTD
THE BEST CONNECTION GROUP LTD
THE CAPITA GROUP PLC
HAYS PLC
IMPELLAM GROUP PLC
JAMES REED & PARTNERS LTD
KELLY SERVICES (UK) LTD
MANPOWER UK LTD
MORSON GROUP PLC
PERTEMPS LTD
PINNACLE STAFFING GROUP PLC
11. Further Sources
Associations
Publications
General Sources
Government Sources
Other Sources
Key Note Sources
Key Note Research
The Key Note Range of Reports
-ADECCO UK LTD
-ALLIED HEALTHCARE GROUP LTD
-THE BEST CONNECTION GROUP LTD
-THE CAPITA GROUP PLC
-HAYS PLC
-IMPELLAM GROUP PLC
-JAMES REED & PARTNERS LTD
-KELLY SERVICES (UK) LTD
-MANPOWER UK LTD
-MORSON GROUP PLC
-PERTEMPS LTD
-PINNACLE STAFFING GROUP PLC
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