UK recruitment industry growth up 10% on 2015
2,926 new recruitment agencies launched in the first half of 2016, a 10% increase on the number of agencies launched in the same period in 2015, according to research from recruitment finance provider, Sonovate.
The data, taken from Companies House, suggests that despite recent economic uncertainty, the recruitment industry is looking positive. The figure found that hiring start-ups had increased by 10% and seven per cent respectively during the first and second quarter of 2016 when compared with last year.
In 2015, a total of 5,110 new recruitment agencies launched in the UK: a 144 % increase on the 2,092 agencies launched in 2010.
Richard Prime, Co-Founder of Sonovate, commented on the results, as reported by Startups.co.uk: “The UK recruitment sector is thriving, and the industry’s rapid growth is showing no sign of slowing. This is good news for the economy, especially during the current climate of uncertainty following the Brexit vote.
“As wage growth continues upwards, and the war for talent intensifies, skilled recruitment professionals are able to use their industry experience and networks to source the best talent.”
A number of factors are responsible for the recruitment sector’s success. Last year saw the UK employment rate rise to the highest level since 1971, according to the Office of National Statistics, and APSCo data shows that vacancies in core sectors are growing year on year. The apparent recent success of the sector could be due to the fact that UK employment rates have risen and that vacancies in a variety of industries are continually rising. According to the report, 90% of the turnover generated by recruitment firms in 2015 came from contract or temp businesses.
An increase in contract recruitment, which is often the result of businesses having to take on extra staff to fulfil demand for expanding workloads, is also responsible for the sector’s growth.
“At Sonovate, we are committed to supporting the recruitment sector’s continued growth and helping even more recruitment companies access the funding they need to prosper,” concludes Prime.