Recruitment Agencies (Temporary & Contract) Market Report

  • January 2011
  • -
  • Key Note Publications Ltd

Executive Summary

This report looks at the market for temporary and contract staffing recruitment in the UK. It covers those businesses which recruit on behalf of clients for temporary and contract staffing positions, whether they call themselves recruitment consultancies, recruitment companies or employment agencies.
The recruitment industry is beginning to recover from 3 very tough years, spanning roughly from August 2007 to March 2010. Every part of the industry has been affected by the recession, although some more so than others. In the temporary and contract staffing sector of the recruitment industry, sales volumes were down by 17.7% in the year to March 2010, compared to 2009. The market picked up in April 2010, and has continued to do so since, although this improvement in the market slowed down August onwards. The market is not constant, with demand for staff in different sectors shifting from month to month during 2010, which has meant that recruitment firms have found it difficult to forecast what their earnings are going to be on a quarterly basis.
The market for temporary and contract work was worth £17.8bn in the year to March 2010, according to the Recruitment & Employment Confederation (REC). This is the lowest figure for at least 5 years, with the REC’s figures revealing that the value of the market stood at £21.56bn in 2005.
The sectors that have come out of the recession the best include industrial/blue collar, secretarial/clerical and drivers. Hotel and catering staff were more in demand in 2010 than in 2009, while the nursing/medical sector remained strong. However, most sectors experienced shortages over the same period, particularly in industries which require skilled workers, such as in manufacturing, where such experienced employees have been in short supply.
Current issues affecting the industry include profitability; government policy regarding migrant workers; exploiting the Internet and mobile technology more effectively; and the Agency Workers Regulations (AWR), which will take effect on October 1st 2011. The AWR is the outcome of the EU’s Agency Workers Directive (AWD), which was ratified by the EU Parliament in October 2009. A further issue for the recruitment market is that more and more clients and potential clients are now choosing to recruit direct, thus cutting out the need for recruitment consultation completely.
The prospects for the recruitment industry will be dependent on how many jobs the private sector can create over the next 4 years, as public and bodies reduce their staff, in line with the Government’s cuts. Another factor which will affect the industry is the UK’s GDP in 2011. As this report was completed, the Institute of Directors (IoD) forecast that the UK economy will only grow by 1.2% in 2011, far less than the growth rate experienced in 2010. It is also lower than most other forecasts, including that of the Bank of England.
Considering these factors, Key Note has forecast a slight increase in the market of 1.5%, for the year ending March 2011, with growth of around 4% expected for 2012.

Table Of Contents

Table of Contents

Foreword
Executive Summary
Market Definition
REPORT COVERAGE
MARKET SECTORS
Temporary Workers
Contract Workers
Recruitment Sectors
MARKET TRENDS
Recruitment Market Continues to Contract
Recruitment and Employment Confederation Reveal Declining Numbers of Recruitment Firms in the UK
Ongoing Financial Challenges for the Recruitment Industry
Recruitment and Employment Confederation and KPMG Reveal Signs of Slow Improvement in the Recruitment Industry
Public Sector Job Market Already at Risk
Interim Management Recruitment Boosted in
Expansion Prospects Overseas for Recruitment Companies
ECONOMIC TRENDS
Population
Gross Domestic Product
Inflation
Unemployment
MARKET POSITION
Market Size
THE TOTAL MARKET
By Value
By Volume
BY MARKET SECTOR
Nursing and Medical
Industrial/Blue Collar Staff
Secretarial/Clerical
Drivers
Technical/Engineering
Computing/IT
Educational Staff
Hotel and Catering
Financial and Accountancy
Professional and Managerial
Construction
Industry Background
RECENT HISTORY
NUMBER OF COMPANIES
EMPLOYMENT
REGIONAL VARIATIONS IN THE MARKETPLACE
HOW ROBUST IS THE MARKET?
LEGISLATION
KEY TRADE ASSOCIATIONS
Recruitment and Employment Confederation
Association of Professional Staffing Companies
Association of Recruitment Consultancies
The Association of Executive Search Consultants
Competitor Analysis
THE MARKETPLACE
MARKET LEADERS
Adecco UK Ltd
Allied Healthcare Group Ltd
Cordant Group PLC
CPL Resources PLC
Manpower PLC
Hays PLC
Impellam Group PLC
Pertemps Ltd
Pinnacle Staffing Group PLC
Staffline Group PLC
OTHER COMPANIES
Acorn Recruitment Ltd
Matchtech Group PLC
Meridian Business Support Group PLC
Morson Group PLC
NES Group Ltd
Orion Engineering Services Ltd
right4staff Ltd
Rullion Ltd
ADVERTISING AND PROMOTION
Strengths, Weaknesses, Opportunities and Threats
STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS
Buying Behaviour
REASONS FOR USING RECRUITMENT AGENCIES
ATTITUDES TOWARDS RECRUITMENT AGENCIES
Current Issues
MARKET CONDITIONS
CORPORATE ACTIVITY
THE AGENCY WORKER DIRECTIVE
SOCIAL MEDIA IN RECRUITMENT
IMMIGRATION AND RECRUITMENT
The Global Market
MAJOR MARKETS
Forecasts
INTRODUCTION
The Economy
MARKET FORECAST
Company Profiles
INTRODUCTION
DEFINITIONS
Turnover (Sales)
Pre-Tax Profit
Profit Margin
Average Remuneration
Sales per Employee
FURTHER INFORMATION
ADECCO UK LTD
Previous Name(s) and Date(s) of Change
Principal Activities
SIC Codes
Structure
Recent Developments
FINANCIAL PROFILE
Sales
Profits
Employees
Balance Sheet/Ratios
ALLIED HEALTHCARE GROUP LTD
Previous Name(s) and Date(s) of Change
Principal Activities
SIC Codes
Structure
Recent Developments
FINANCIAL PROFILE
Sales
Profits
Employees
Balance Sheet/Ratios
CORDANT GROUP PLC
Previous Name(s) and Date(s) of Change
Principal Activities
SIC Codes
Structure
Recent Developments
FINANCIAL PROFILE
Sales
Profits
Employees
Balance Sheet/Ratios
CPL RESOURCES PLC
Previous Name(s) and Date(s) of Change
Principal Activities
NACE Codes
Structure
Recent Developments
FINANCIAL PROFILE
Sales
Profits
Employees
Balance Sheet/Ratios
MANPOWER PLC
Previous Name(s) and Date(s) of Change
Principal Activities
SIC Codes
Structure
Recent Developments
FINANCIAL PROFILE
Sales
Profits
Employees
Balance Sheet/Ratios
HAYS PLC
Previous Name(s) and Date(s) of Change
Principal Activities
SIC Codes
Structure
Recent Developments
FINANCIAL PROFILE
Sales
Profits
Employees
Balance Sheet/Ratios
IMPELLAM GROUP PLC
Previous Name(s) and Date(s) of Change
Principal Activities
SIC Codes
Structure
Recent Developments
FINANCIAL PROFILE
Sales
Profits
Employees
Balance Sheet/Ratios
PERTEMPS LTD
Previous Name(s) and Date(s) of Change
Principal Activities
SIC Codes
Structure
Recent Developments
FINANCIAL PROFILE
Sales
Profits
Employees
Balance Sheet/Ratios
PINNACLE STAFFING GROUP PLC
Principal Activities
SIC Codes
Structure
Recent Developments
FINANCIAL PROFILE
Sales
Profits
Employees
Balance Sheet/Ratios
STAFFLINE GROUP PLC
Previous Name(s) and Date(s) of Change
Principal Activities
SIC Codes
Structure
Recent Developments
FINANCIAL PROFILE
Sales
Profits
Employees
Balance Sheet/Ratios
Further Sources
Associations
Publications
General Sources
Government Publications
Other Sources
Key Note Sources
Key Note Ltd
Understanding TGI Data
Number, Profile, Penetration
Social Grade
Standard Region
Key Note Research
The Key Note Range of Reports

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