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RECRUITMENT - UK - AUGUST 2019

Published By :

Mintel

Published Date : Aug 2019

Category :

Human Resources

No. of Pages : N/A

The recruitment industry has been set back by Brexit uncertainty and a weakening global economy. These factors have reduced the rate of growth, but also increased demand for flexible temporary labour. Combined with the ubiquity of computing and the internet, a continuing influx of new SMEs are driving competition and fostering the growth of innovative platforms that take advantage of these trends in technology and the labour market.

Table of contents

OVERVIEW
What you need to know
EXECUTIVE SUMMARY
The market
Economic uncertainty drags on recruitment market growth in 2019
Figure 1: UK recruitment market value and forecast, £ billion, 2015-24
Flexibility of temporary recruitment props up market value
Figure 2: UK recruitment market value, by type, £ billion, 2014-19
Public sector employment increases for the first time since 2010
Figure 3: UK public sector employment, ‘000, seasonally adjusted, 2010-19
Figure 4: UK private sector employment, ‘000, seasonally adjusted, 2010-19
Companies and brands
What we think
ISSUES AND INSIGHTS
No-deal Brexit will amplify existing skills shortages
The facts
The implications
Brexit uncertainty is both a boost and a hindrance
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Recruitment sector growth slowed by uncertainty
Benefits of flexibility offered by temporary employment sustain demand for it
Market value forecast to grow robustly if Brexit is resolved
MARKET SIZE
Market value growth slows from 2018
Figure 5: UK recruitment market value, £ billion, 2014-19
Economic uncertainty has damaged employer confidence
Figure 6: REC JobsOutlook index, employers’ economic outlook and investment hiring confidence, May-July 2018-Mar-May 2019
Public sector sees growth for the first time in almost a decade
Figure 7: UK public sector employment, ‘000, seasonally adjusted, 2010-19
Composition of public sector employment
Figure 8: Public sector employment in central and local government, ‘000, seasonally adjusted, 2010-19
Private sector employment growth continues despite Brexit uncertainty
Figure 9: UK private sector employment, ‘000, seasonally adjusted, 2010-19
MARKET SEGMENTATION
Flexibility of temporary recruitment props up market value
Figure 10: UK recruitment market value, by type, £ billion, 2014-19
Popularity of temporary recruitment reinforces its stability
Figure 11: Segmentation of temporary and contract employment through recruitment, % volume, 2017 and 2018
Temporary recruitment demand is being shaped by Brexit
Figure 12: Segmentation of temporary and contract employment through recruitment, % volume, 2018
Permanent recruitment growth slowed by political uncertainty
Figure 13: Segmentation of permanent employment through recruitment, % volume, 2017 and 2018
Drivers, education and healthcare sectors continue to bolster permanent recruitment demand
Figure 14: Segmentation of permanent employment through recruitment, % volume, 2018
MARKET FORECAST
Forecast growth remains strong but faces short-term risk
Figure 15: UK recruitment market value forecast, £ billion, 2019-24
Future sources of recruitment demand
Information technology
Energy, oil & gas and construction
Health and social care
IMPACT OF THE ECONOMY
Economic uncertainty presents a growing obstacle to investment
Figure 16: UK GDP, year-on-year, chained volume measures, seasonally adjusted, £ million, 2012-18
Business confidence and investment
Figure 17: ICAEW UK National Business ConfidenceTM index, Q3 2013-Q2 2019
Figure 18: UK business investment, £ million, Q1 2015-Q1 2019
MARKET TRENDS
Labour market structure and conditions
Figure 19: UK employment rate, % of working age population, 2010-19
Figure 20: UK unemployment rate, % of those aged 16+, 2010-19
Figure 21: UK average weekly earnings growth, 2001-19
Population growth and migration
Migration
Figure 22: UK migration, thousands, December 2010-18
UK post-Brexit immigration regime
Figure 23: UK net migration, by citizenship, December 2010-18
Vacancies
Figure 24: UK job vacancies, 000s, 2010-19
Figure 25: UK job vacancies by industry, April-June 2018 and April-June 2019
Regional labour markets
Figure 26: UK employment rates, by region, % of those aged 16-64, Mar-May 2018 and Mar-May 2019
Figure 27: UK regional employment, by industrial sector, %, March 2019
MARKET DRIVERS
Skills shortages in the UK
Figure 28: Number of apprenticeship starts, 2015/16-2018/19
Increasing prevalence of flexible working
Figure 29: Self-employment in selected industries indexed to 2010 values, 2010-19
Introduction of IR35 tax legislation
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Influx of new businesses drives competition in an uncertain economic climate
INDUSTRY STRUCTURE
Changes in industry structure
Figure 30: Analysis of the changes in the structure of the recruitment industry, number of outlets and businesses, 2013-18
Structure by employment
Figure 31: Analysis of the employment structure of the recruitment industry, 2017 and 2018
Structure by turnover
Figure 32: Analysis of the financial structure of businesses in the recruitment industry, £’000, 2017 and 2018
COMPANY PROFILES
Adecco UK
Recent company activity
Financial information
Figure 33: Financial analysis of Adecco UK, £ million, 2014-18
Hays Plc
Recent company activity
Financial information
Figure 34: Financial analysis of Hays plc, £ million, 2014-18
Impellam Group Plc
Recent company activity
Financial information
Figure 35: Financial analysis of Impellam Group Plc, £ million, 2014-18
Page Group
Recent company activity
Financial information
Figure 36: Financial analysis of Page Group, £ million, 2014-18
Reed
Reed in Partnership
Figure 37: Financial analysis of Reed in Partnership, £ million, 2014-18
Reed Online
Figure 38: Financial analysis of Reed Online, £ million, 2014-18
Reed Specialist Recruitment
Recent company activity
Financial information
Figure 39: Financial analysis of Reed Specialist Recruitment, £ million, 2014-18
Robert Walters
Recent company activity
Financial information
Figure 40: Financial analysis of Robert Walters, £ million, 2014-18
SThree
Recent company activity
Financial information
Figure 41: Financial analysis of SThree, £ million, 2014-18
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Methodology
FURTHER SOURCES AND CONTACTS
Trade associations
Chartered Institute of Personnel and Development
Recruitment and Employment Confederation
Association of Professional Staffing Companies
Recruitment Society
Trade magazines
Human Resources
Online Recruitment Magazine
People Management
Personnel Today
Recruiter
Recruitment International
Trade events
Recruitment Agency Expo
Recruitment Agency Expo

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