|
|
 |
|
Viewing report
|
|
|
|
Recruitment Agencies (Temporary & Contract) Market Report 2008
Key Note Publications Ltd, Jan 2008, Pages: 92
This Key Note Market Report analyses the UK market for temporary and contract recruitment. It covers those organisations — such as recruitment consultancies, recruitment companies and employment agencies — that recruit on behalf of clients searching for temporary positions. At present, the market's turnover is at a record high, but it faces many challenges to remain in this position of strength. The market for temporary and contract workers was worth £23.2bn in the year to March 2007, according to the Recruitment & Employment Confederation (REC). This represents a rise of 7.4% on the previous year. 2007 was a good year for the market, and the so-called `credit crunch' does not yet appear to have affected recruitment firms. Overall, the market has become a candidates' market, with applicants appearing to be more selective than ever before, moving from one recruitment firm to another to obtain the best deal.
The market is split into two main sectors, temporary recruitment and contract recruitment. However, there are no industry or government statistics that supply separate figures for these two sectors. Therefore — although definitions for these two sectors are provided (see Chapter 1 — Market Definition) — for the purpose of this Key Note Market Report, the market is divided into 11 economic and professional sectors. These sectors are: accounting/financial; computing/IT; construction; drivers; education; hotel/catering; industrial/blue collar; nursing and other medical; professional/managerial; secretarial/clerical; and technical/engineering.
There were many acquisitions and mergers in 2007, and these have included private-equity ventures. It was also a good year for new independent firms. Although most of the big firms in the top 20 are managing well in this new expanding market, there are signs that some of them are losing market share and profit margins.
Profitability in the industry as a whole is coming under pressure. There is still concern about the Agency Workers Directive, which has been floated once again by the European Commission. The continuing tax changes for contractors are another area of concern.
However, the major issue is candidate shortage. A significant change is taking place in the composition of the UK workforce, which was becoming evident several years ago, which means there are skills shortages in several UK industries. Temporary or contract work answers this need to some extent, but there are shortages even in the number of suitably skilled and qualified temporary and contract workers.
Key Note forecasts steady growth in the market between 2008 and 2012. However, recruitment firms are facing increasing costs pressures and more competition, and there are still some doubts about just how much the economy will grow in 2008. Although there is no doubt that the market will grow, this growth might be lower than expected.
Product samples
A sample for this product is available. Please Login/Register to download this sample.
|
|
|
|
