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Home > Business/Finance > Diversified Services > Employment Services
Employment Agencies - UK
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This report looks at the UK market for employment agencies. It covers agencies dealing in temporary and permanent full-time and part-time work, and both white- and blue-collar employment. Mintel last examined the UK market for employment agencies in December 2002.
The recruitment market is diversified, fragmented and mature. Recruitment agencies play a significant role in delivering a flexible workforce that has become something of a talisman against the high unemployment levels experienced by the UK's European counterparts in recent years. More than half of the temporary workers in the EU are employed in the UK. The advent of the online recruitment business has not revolutionised the industry in terms of performance, as had been predicted in the mid-1990s. Rather, Internet and communications technologies have benefited traditional high street employment agencies and companies advertising their own vacancies on the Web, as much as they have the specialist online recruitment companies.
The industry enjoyed a period of steady growth during the 1990s, but events on the world stage caused widespread uncertainty during 2001 and 2002, leaving the industry with sharp declines in revenue and volumes. The future looks brighter following a return to growth, albeit at a slower pace, during 2003/04. However, margins continue to diminish, as social regulation demands greater administrative effort and therefore cost. In addition, demographic shifts completely outside the control of the supply structure will change the face of the industry in the foreseeable future.
This report will examine changes in the market over the review period, as well as explore how the changing age structure of the population will have a significant impact on recruitment agencies in the next five years.
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