This Key Note Market Report examines the UK market for permanent recruitment, which includes firms engaged in general and executive permanent appointments. The market is segmented into the following recruitment sectors: blue collar, computing/IT, construction, drivers, educational, financial/accountancy, hotel/catering, nursing/medical, professional/managerial, secretarial/clerical and technical/engineering.
In the year ending March 2006, the market was valued at £3.28bn by the Recruitment & Employment Confederation (REC), which also put the number of appointments for the year at 706,080. The market increased in value by just 2.2% on the previous 12 months. However, 2006 as a whole has continued to be a good year for this market, with growth proceeding at a steady pace.
Secretarial/clerical and computing/IT are the largest sectors, and represent nearly half of all appointments made. Following a drop in share in the previous year, the computing/IT sector became significant again in the year to March 2006.
The major firms include: Adecco Holdings (UK) Ltd, Alexander Mann Group Ltd, Brook Street (UK) Ltd, Carlisle Group PLC, Matchtech Group PLC, Michael Page International PLC, Morson Group PLC, Pertemps Recruitment Partnership Ltd, Robert Walters PLC, Rullion Ltd and SThree PLC. Most of the industry is UK owned.
The two main issues for the market are currently candidate supply and profit margins. Staff turnover in the industry remains high and there is anxiety about the high number of new entrants. Faced with these pressures, many firms merged in 2006, hoping for better financial returns. However, it is not only financial pressures that have been of concern. The threat of data theft is increasing in line with the spread of computer access.
Key Note forecasts that the market will increase in value by 2.1% in the year ending March 2007, after which steady year-on-year growth of between 2.1% and 2.8% will bring the total value of the market to £3.7bn by March 2011. Given the immense activity in the market in 2006 and the continued demand for permanent staff predicted for 2007, these figures might seem modest. However, competition is severe and fee rates remain under pressure, so the value of assignments is unlikely to accelerate considerably in the near future.
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