UK Recruitment Industry Continues to Grow Despite Brexit

It seems little can stop the UK recruitment sector at the moment, least of all any concerns about Brexit. The industry has continued to grow despite lack of certainty about how the UK will leave the EU in recent months.

There was a total of 11% growth over the 2017/18 period, with recruiters placing around 1 million agency workers into work on average per day, as well as helping 1.1 million people into permanent roles. The figures come from the recent REC report on trends in the recruitment sector for 2017/18.

Recruitment Industry Trends – Key Findings

In spite of economic unpredictability, Industry turnover for 2017/18 reached a record high of £35.7 billion. This is certainly no small feat. Other key aspects of the report found:

• Average permanent placement value was £4,238, 6.4% higher than in 2016/17.
• Average annual turnover of temporary and contract workers was £34,976, which is 20% higher than the average for 2016/17.
• 85% of contract placements were for at least 12 weeks.
• 45% of contract workers were on assignment for at least six months or more.
• 64% of temporary worker placements were for at least 12 weeks or more.
• 20% of temporary worker placements were for at least six months or more.
• There was an increase in the number of businesses working in the recruitment industry by around 10%.

Neil Carberry, the Chief Executive of the REC, commented on the report, saying: “It has been an extraordinary year for recruitment and recruiters. Tight labour markets and quickly shifting skills needs have driven the growth of the industry – but only because recruiters have adapted swiftly to changing times.” He went on to add that: “We see this increased value for clients reflected in our monthly survey feedback – recruitment is a key part of the UK’s world-leading professional services sector. We should celebrate an industry which boosts the economy and transforms candidates’ lives every single day.”.

Future Forecasts

The results for the last year weren’t the only good news, according to the report. The REC predicts that even taking Brexit into account, growth should stay on track until at least 2021. Industry growth is estimated to be around 4% for 2019, 4.5% for 2020, and 5% for 2021.

Some experts and commentators would urge caution of course. Given the general uncertainty facing the country’s economy, there’s no real way to know what could happen in the next few years – especially when it comes to Brexit. Additionally, the high employment rates are already starting to put employers under pressure to find skilled labour, which has, in part, affected the increase of temporary and contract staff, who are being used to plug these gaps.

Despite these concerns, it’s hard not to be impressed by the robustness of the UK’s employment sector against all odds. Simon Adcock, the head of HSBC’s Professional Services noted that: “Despite current uncertainty, the recruitment industry’s focus on quality of service and its enthusiasm for technological innovation has seen it continue to flourish, boosting the wider UK economy.”.