UK rec industry grew by 11% in 2017/2018 despite Brexit qualms

UK rec industry grew by 11% in 2017/2018 despite Brexit qualms

The Recruitment and Employment Confederation’s (REC) annual report revealed that the industry’s total turnover saw an 11% increase in 2017/18 despite ongoing Brexit uncertainties – onrec reports.

'The Recruitment Industry Trends’ report disclosed that the industry’s turnover for permanent, temporary and contract appointments reached £35.7billion.

This broke down to approximately £30.85billion generated through temporary and contract-based placements, while £4.84billion was turned over on the back of permanent work placements.

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Not only did the recruitment industry grow economically, REC noted an increase in the number of businesses operating within the sector which now totals 30,430. And the sector now provides jobs to more than 110,000 people.

REC’s Chief Executive Officer (CEO) Neil Carberry says that it been an extraordinary financial year for the industry and for recruiters themselves.

“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.”

Additionally, the research found that the average value of permanent placements from the wider recruitment industry was up by 6.4% from the 2016/17 average.

The average annual turnover for each temporary or contract worker on assignment was £34,976 which was up 20% on the 2016/17 average. So, it seems that the industry has seen significant growth in numerous areas of business.

“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,” Carberry adds.

And, while this report concludes that recruiters have quickly adapted to changing times, ongoing Brexit qualms continue to raise concerns about the future of the jobs market.

Earlier this week, Recruitment Grapevine reported on a Sussex University study which found that a no-deal Brexit could cost the UK almost 750,000 jobs.

The research found that nearly 150,000 jobs could be lost in London, 28,600 in Wales, 63,500 in Scotland and 80,450 lost in the North West of England.

With these reservations ahead of Brexit, experts urge recruiters to do everything that they can to prepare, even if that means rolling out recruitment models that will focus on sourcing talent from outside Europe to plug staffing shortages post-Brexit.

From our magazine

David Morel, CEO and Founder of Tiger Recruitment, exclusively told Recruitment Grapevine that, although the employment market has started to feel the effects of a reduced European workforce in the UK, “the business support sector is still performing well”.

He explained: “It remains to see how Brexit will affect access to international talent, as the post-Brexit lay of the land is still ambiguous. Undoubtedly, recruiters who stay at the forefront of emerging trends will have the upper hand when it comes to sourcing top candidates.”

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