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As many as 7,630 new recruitment agencies have registered since the beginning of 2018 – an average start-up rate of 848 per month.

Using data from Companies House under a Freedom of Information Act, Clearly PR has revealed that this is set to be a record year for new recruitment agency start-ups – predictions show that those registering should stand at 10,000 by the end of the year.

The top 10 cities with the highest number of recruitment agency start-ups over the last year are as follows:

  1. London (2,962)
  2. Birmingham (1,207)
  3. Manchester (128)
  4. Leeds (122)
  5. Leicester (81)
  6. Bolton (58)
  7. Nottingham (52)
  8. Bristol (49)
  9. Berkhamsted (44)
  10. Walsall (40)

Paul MacKenzie-Cummins, managing director at Clearly PR & Marketing Communications, commented on these latest results, “Despite the doom and gloom over Britain’s impending exit from the EU, surprisingly Brexit has served as a catalyst for industry growth rather than a hindrance.

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“Since the referendum of June 2016, the number of new recruitment businesses starting up has continued to rise, with last year seeing 9,001 agencies opening their doors for the first time. And it is easy to see why.

“Record high employment is great for the economy, but it also means that talent pools are shrinking. Yet employers have vacancies to fill and the harder it becomes to find the people they need, the more likely they are to turn to recruiters to solve their recruitment challenges.

“Then there is the virtual removal of the barriers to entry for new start-ups. One legacy of the recession has been the rise in alterative finance providers, who enable agency owners to gain access to the funds they need without having to wait weeks or months before clients settle their invoices.

“Add off-the-shelf websites and cloud-based ATSs and CRMs to the equation and it is easy to see why so many ambitious consultants are opting to go it alone – the opportunities and demand are high, while the support to help them get off the ground in the first place is plentiful.”

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