Recruitment Industry Turnover Record High

Turnover in the UK's recruitment industry was at a record high between 2007 and 2008 with a figure in excess 0f £27 billion.

The annual survey by the Recruitment and Employment Confederation (REC), showed that the most significant growth was achieved through a sharp increase in the turnover from permanent placements from £3.514 billion to £4.276 billion, a rise of 21.7 per cent. This is despite the number of permanent placements falling from 787,280 to 726,863, suggesting that employers are willing to pay more for the right candidate.

Commenting on the results, Kevin Green, the REC’s Chief Executive, said: “The huge growth in permanent recruitment turnover shows that employers are willing to pay more for the right candidate. This remains the case even in the changing employment climate. The downturn is really putting the skills of professional recruiters to the test but at the same time, this is giving them a real opportunity to shine and show employers what they’re really made of."

“As we enter a significant economic downturn, it is vital that the recruitment industry retains its ability to help the economy bounce back from the bottom of the cycle which will in turn enable early recovery...Within this context, we must ensure that new legislation such as the EU Agency Workers Directive and the taxation of recruitment services are implemented and reviewed in a way that does not add further barriers.”

The number of temporary / contract workers declined over the period from 1,377,310 to 1,220,310, a reduction of 1.8 per cent with a corresponding fall in turnover. The shift was felt most acutely by single site agencies which make up the bulk of the industry.