Recruitment industry reports significant growth

(2 minutes to read)

Earlier this year, it was predicted that this would be a bumper year for recruitment industry growth with nearly 8,000 new recruitment agencies registering since the beginning of 2018.

Latest figures show that the UK recruitment industry grew by 11% to £35.7 billion in 2017/18 – this is despite the ongoing uncertainty surrounding Brexit.

Data from the Recruitment and Employment Confederation’s (REC) ‘Recruitment Industry Trends’ report has revealed that the total industry turnover from permanent and temporary/contract placements, and other HR services, reached £35.7 billion, an increase of 11% on last year.

£30.85 billion was generated through temporary/contract placement activity, and approximately £4.84 billion through permanent placements.

The number of businesses operating in the UK recruitment industry grew by almost 10% in the year to March 2018, totalling 30,430, and the industry employed approximately 115,000 people.

Other figures from the 2017/18 report include:

  • Almost two thirds (64%) of temporary assignments were for 12+ weeks, while one in five (20%) were for 6+ months (compared to 61% and 20% respectively in 2016/17)
  • 85% of contract placements were for 12+ weeks, and 45% of contract workers were on assignment for 6+ months (compared to 80% and 44% respectively in 2016/17)
  • The average value of permanent placements from the wider recruitment industry was £4,238 (up by 6.4 per cent on the average in 2016/17)
  • The average annualised turnover of each temporary/contract worker on assignment was £34,976 (up 20% on the average in 2016/17)

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The report also includes the REC’s forecast for the next three years, which remains positive despite the unknowns in the political landscape. The REC predicts that the UK’s recruitment industry will grow by 4 per cent in 2018/19, 4.5 per cent in 2019/20 and 5 per cent in 2020/21.

REC chief executive, Neil Carberry, commented, “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. 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.

“The path ahead is uncertain – Brexit, immigration reform, tax changes, technology. But this report shows that recruiters can look at that uncertainty and see the opportunities. Whatever the coming months and years bring, recruiters will continue to use their skills and knowledge to boost the UK’s labour market and find people their perfect job.”

To find out more about contracting please contact Jaime on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com.

Why Dolan Accountancy?

Dolan Accountancy was set up by Simon J Dolan, the man behind the well-known brand SJD Accountancy. With over 25 years experience in the contracting marketing, Dolan Accountancy has the heritage, reputation and credibility you can trust. Working closely with our sister company, ContractorUmbrella, it means we can offer one low cost, fixed fee package at £95 + VAT per month. This gives you the flexibility of using both our Limited Company Accountancy Services and our award winning Umbrella Service, for one inclusive cost. We don’t believe in tiered packages or hidden extra fees, instead we aim to give you everything you need, including:

  • Free Company Formation – This is where it all begins. Once you have decided on an available name, we will form your company free of charge (if using our accountancy services) and it will be ready for you to use in as little as three hours.
  • Free use of ContractorUmbrella – With changes in Public Sector IR35 Legislation we understand that sometimes you are required to contract via an umbrella company. We will keep your limited company ticking over, while you work margin free via our sister company, ContractorUmbrella.
  • A Dedicated Accountant – Your accountant will be there for any company or personal tax advice that you require. We will never outsource work, even to internal teams.
  • Free Access to FreeAgent – The founder behind the multi award winning FreeAgent platform was one of Simon’s first clients, therefore it only seems fitting that we offer all of our clients access to FreeAgent, free of charge.
  • Free Business Banking – We have decided to waive our commission so our clients can use Tide free of charge for the first year.
  • Unlimited IR35 Status Reviews – We will review all of your contracts for IR35 purposes and provide you with our professional opinion as to its status.
  • Free Registered and Director’s Service Office Address – Sometimes you just don’t want your home address on display at Companies House. When you sign up to our accountancy services, we will offer the use of our address as an alternative.
  • Your Business and Personal Taxation Needs – This includes Company Accounts, Director’s Personal Tax Return, VAT Returns, Payroll, Corporation Tax and Dividend advice, to name just a few.

If you’d like to find out more about how Dolan Accountancy can help you and your business, please give us a call on 01442 795100 or email sophie.lewis@dolanaccountancy.com or jaime.thorpe@dolanaccountancy.com.

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