Labour costs in the UK advertising and market research sector have shown fluctuating growth over the past decade. From 2013 to 2023, the annual values increased from 6.76 billion to 9.73 billion Pounds Sterling. This represents a steady upward trend with some variability: notable growth peaks in 2014 by 10.59% and 2017 by 14.05%, contrasted by a drop in 2019 by -5.23% due to external macroeconomic factors. In recent years, the growth rate has moderated, with 2022 and 2023 showing a moderate increase of 2.36% and 2.25% respectively. The compound annual growth rate (CAGR) over the past five years is 1.35%.
Looking forward, forecasts from 2024 to 2028 predict continued growth, albeit at a moderate pace, with the labour costs expected to reach 10.74 billion by 2028. The forecasted five-year CAGR stands at 1.56%, indicating a more stable yet consistent rise in labour costs.
Key trends to watch for in the future include the impact of technological advancements on labour efficiency, potential economic shifts due to geopolitical factors, and the changing dynamics of remote and hybrid work models influencing overall labour costs.
