Table of Contents
Executive Summary
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- The market
- Economic uncertainty drags on recruitment market growth in 2019
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- Figure 1: UK recruitment market value and forecast, £ billion, 2015-24
- Flexibility of temporary recruitment props up market value
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- Figure 2: UK recruitment market value, by type, £ billion, 2014-19
- Public sector employment increases for the first time since 2010
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- Figure 3: UK public sector employment, ‘000, seasonally adjusted, 2010-19
- Figure 4: UK private sector employment, ‘000, seasonally adjusted, 2010-19
- Companies and brands
- What we think
Issues and Insights
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- No-deal Brexit will amplify existing skills shortages
- The facts
- The implications
- Brexit uncertainty is both a boost and a hindrance
- The facts
- The implications
The Market – What You Need to Know
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- Recruitment sector growth slowed by uncertainty
- Benefits of flexibility offered by temporary employment sustain demand for it
- Market value forecast to grow robustly if Brexit is resolved
Market Size
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- Market value growth slows from 2018
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- Figure 5: UK recruitment market value, £ billion, 2014-19
- Economic uncertainty has damaged employer confidence
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- Figure 6: REC JobsOutlook index, employers’ economic outlook and investment hiring confidence, May-July 2018-Mar-May 2019
- Public sector sees growth for the first time in almost a decade
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- Figure 7: UK public sector employment, ‘000, seasonally adjusted, 2010-19
- Composition of public sector employment
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- Figure 8: Public sector employment in central and local government, ‘000, seasonally adjusted, 2010-19
- Private sector employment growth continues despite Brexit uncertainty
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- Figure 9: UK private sector employment, ‘000, seasonally adjusted, 2010-19
Market Segmentation
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- Flexibility of temporary recruitment props up market value
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- Figure 10: UK recruitment market value, by type, £ billion, 2014-19
- Popularity of temporary recruitment reinforces its stability
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- Figure 11: Segmentation of temporary and contract employment through recruitment, % volume, 2017 and 2018
- Temporary recruitment demand is being shaped by Brexit
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- Figure 12: Segmentation of temporary and contract employment through recruitment, % volume, 2018
- Permanent recruitment growth slowed by political uncertainty
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- Figure 13: Segmentation of permanent employment through recruitment, % volume, 2017 and 2018
- Drivers, education and healthcare sectors continue to bolster permanent recruitment demand
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- Figure 14: Segmentation of permanent employment through recruitment, % volume, 2018
Market Forecast
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- Forecast growth remains strong but faces short-term risk
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- Figure 15: UK recruitment market value forecast, £ billion, 2019-24
- Future sources of recruitment demand
- Information technology
- Energy, oil & gas and construction
- Health and social care
Impact of the Economy
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- Economic uncertainty presents a growing obstacle to investment
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- Figure 16: UK GDP, year-on-year, chained volume measures, seasonally adjusted, £ million, 2012-18
- Business confidence and investment
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- Figure 17: ICAEW UK National Business ConfidenceTM index, Q3 2013-Q2 2019
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- Figure 18: UK business investment, £ million, Q1 2015-Q1 2019
Market Trends
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- Labour market structure and conditions
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- Figure 19: UK employment rate, % of working age population, 2010-19
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- Figure 20: UK unemployment rate, % of those aged 16+, 2010-19
- Figure 21: UK average weekly earnings growth, 2001-19
- Population growth and migration
- Migration
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- Figure 22: UK migration, thousands, December 2010-18
- UK post-Brexit immigration regime
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- Figure 23: UK net migration, by citizenship, December 2010-18
- Vacancies
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- Figure 24: UK job vacancies, 000s, 2010-19
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- Figure 25: UK job vacancies by industry, April-June 2018 and April-June 2019
- Regional labour markets
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- Figure 26: UK employment rates, by region, % of those aged 16-64, Mar-May 2018 and Mar-May 2019
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- Figure 27: UK regional employment, by industrial sector, %, March 2019
Market Drivers
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- Skills shortages in the UK
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- Figure 28: Number of apprenticeship starts, 2015/16-2018/19
- Increasing prevalence of flexible working
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- Figure 29: Self-employment in selected industries indexed to 2010 values, 2010-19
- Introduction of IR35 tax legislation
Companies and Brands – What You Need to Know
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- Influx of new businesses drives competition in an uncertain economic climate
Industry Structure
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- Changes in industry structure
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- Figure 30: Analysis of the changes in the structure of the recruitment industry, number of outlets and businesses, 2013-18
- Structure by employment
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- Figure 31: Analysis of the employment structure of the recruitment industry, 2017 and 2018
- Structure by turnover
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- Figure 32: Analysis of the financial structure of businesses in the recruitment industry, £’000, 2017 and 2018
Company Profiles
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- Adecco UK
- Recent company activity
- Financial information
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- Figure 33: Financial analysis of Adecco UK, £ million, 2014-18
- Hays Plc
- Recent company activity
- Financial information
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- Figure 34: Financial analysis of Hays plc, £ million, 2014-18
- Impellam Group Plc
- Recent company activity
- Financial information
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- Figure 35: Financial analysis of Impellam Group Plc, £ million, 2014-18
- Page Group
- Recent company activity
- Financial information
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- Figure 36: Financial analysis of Page Group, £ million, 2014-18
- Reed
- Reed in Partnership
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- Figure 37: Financial analysis of Reed in Partnership, £ million, 2014-18
- Reed Online
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- Figure 38: Financial analysis of Reed Online, £ million, 2014-18
- Reed Specialist Recruitment
- Recent company activity
- Financial information
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- Figure 39: Financial analysis of Reed Specialist Recruitment, £ million, 2014-18
- Robert Walters
- Recent company activity
- Financial information
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- Figure 40: Financial analysis of Robert Walters, £ million, 2014-18
- SThree
- Recent company activity
- Financial information
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- Figure 41: Financial analysis of SThree, £ million, 2014-18
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Methodology
Further Sources and Contacts
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- Trade associations
- Chartered Institute of Personnel and Development
- Recruitment and Employment Confederation
- Association of Professional Staffing Companies
- Recruitment Society
- Trade magazines
- Human Resources
- Online Recruitment Magazine
- People Management
- Personnel Today
- Recruiter
- Recruitment International
- Trade events
- Recruitment Agency Expo
- Recruitment Agency Expo
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