The UK’s recruitment sector is “thriving” with nearly 3,000 new agencies launching in the first six months of 2016, according to new research from financial provider Sonovate.
Entrepreneurs looking for their next venture and recruitment professionals looking to go it alone should consider launching a hiring start-up in 2016 if new research released by financial provider Sonovate is anything to go by.
The research, which is based on data from Companies House, reveals that the sector is continuing to prosper despite the recent economic uncertainty following June’s Brexit vote. Sonovate indicates that 2,926 recruitment agencies entered the market in the first half of 2016, a 10% increase on the same period last year.
Richard Prime, Co-Founder and Co-CEO of Sonovate, commented on the results, as reported by Startups.co.uk. Prime believes that UK recruitment is continuing to thrive and that growth rates are continuing unabated. In the context of the uncertainty created by the Brexit vote, he believes this to be good news for the economy as a whole.
With remuneration packages continuing to spiral in many sectors and intensifying competition for talent, the skills of recruitment professionals and the value of their experience in relevant sectors, together with their networks, are essential in identifying the requisite talent.
Sonovate’s figures show that contract business is the main reason behind the sector’s most recent growth spurt. It says that contract and temporary business grew by 9.5% in 2015 compared with the previous year and now accounts for 90% of the industry’s £31.5 billion turnover.
The sector is also benefiting from the highest employment rate since 1971. Figures from the Office of National Statistics (ONS) reveal the number of people in work grew by 478,000 year-on-year by January this year, driving UK employment to 31.42 million. Britain’s current unemployment rate of 5.3% now equals what it was before the global economic crisis hit in late 2007.
Sonovate also indicates that the number of advertised vacancies continues to soar. This is backed by data revealed by APSCo earlier this year showing permanent vacancies grew by 7% year-on-year. The financial sector is driving the increase, with the number of permanent vacancies and contract roles rising 13% and 85% respectively year-on-year in January.
This latest boost will be nothing new to the hiring sector which has been growing steadily over the last five years. There were 5,110 agencies launched in the UK last year, a 144 % increase on the number launched in 2010.
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