I've just got my copy of the REC's Annual Trends Survey and have been taking a look. It's certainly a well researched and chunky read crammed full of data.
Their summary reads:
Turnover in the UK’s recruitment industry has bounced back by over 25 per cent to just under £25 billion over the past year (April 2010 to March 2011), according to the latest annual industry report by the Recruitment and Employment Confederation (REC). The Medium Term Forecast is for single digit growth over the next four years with the industry expected to peak at over £30 billion in 2014/15.
The sharp upsurge in the annual turnover to £24.6 billion, an increase of 25.3 per cent, compares to £19.7 billion in the same period the previous year (April 2009 to March 2010). More recent data from agencies confirms that the growth has decelerated– reflecting ongoing economic uncertainty. However, the upbeat message from the REC’s Annual Industry Trends Survey is that the industry has an innate ability to re-energise itself and to come back stronger.
Some key findings of the survey are as follows:
• Turnover in temporary/contract staffing has returned to 2006/2007 levels at £22 billion compared to its low point last year of £17.8 billion, a rise of 24.1 per cent.
• Permanent recruitment also rallied to reach £2.5 billion in the past year, a massive 37 per cent increase on £1.8 billion recorded in 2009/10.
• Volumes of perms placements rose by 38.3 per cent from 436,822 last year to 604,193 in 2010/11 while temp placements were up 19.3 per cent and top the million mark again at 1,049, 333 compared to 879, 000 last year.
• The number of people working in recruitment has gone up 13.1 per cent from 80,528 last year to 91,114 this year.
• A rise overall industry turnover to £24, 683 billion compared to £19.7 billion in 2009/10. This represents a 25.3 per cent increase in overall turnover.
• Overall turnover for temporary/contract staff went up to £22,095 billion from £17.804 billion, a rise of 24.1 per cent. Total turnover for permanent staff also grew from to £2,587 billion from £1.888 billion, a rise of 37 per cent.
• The largest number of temporary placements was again in the Industrial and blue collar sector which grew to 24 per cent compared to 21 per cent last year. This was followed by secretarial/clerical at 17 per cent and computing/IT at nine per cent. Accounting/financial placements were again bottom at three per cent. .
• The largest sector for permanent placements was secretarial/clerical which rose from 14 per cent last year to 22 per cent while bottom were other industrial/blue collar at two per cent.
• The ratio of permanent to temporary staff has also shifted as a result of these latest figures. The temporary staffing sector has dropped back one per cent this year from 90.4 per cent last year to 89.52 per cent while the permanent sector now accounts for 10.48 per cent of the industry compared to 9.6 per cent in 2009/10.
• Nearly one in ten agencies working in the permanent sector reported earnings at their lowest level – under nine per cent, twice as many as last year. The number of agencies reporting margins of 25 per cent and over has halved from 7.6 per cent last year to 3.7 per cent this year.
• The REC’s Medium Term Forecast predicts the recruitment industry’s annual growth at 3.6 per cent next year (2011/12) followed by 4.7 per cent in 2012/13, rising to 7.1 per cent for 2013/14 and 7.3 per cent in 2014/15. This represents a return to single figure growth over the next four years to reach a new peak of £30.8 billion in 2014/15.
Growth predications aren't exactly going to knock anyone's socks off – but at least the surveys suggests movement in the right direction!
If you want a copy of the report it's available from the REC website
