Product Type: Market Research Report
Published by: Mintel International Group Ltd.
Published: October 2004
Product Code: R560-1352Description 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.
Table of Contents Introduction and Abbreviations
Definitions
Consumer research
ACORN
Household working patterns
Advertising data
Abbreviations
Premier Insight
Widening the appeal of employment agencies
Fostering an ongoing relationship with job-seekers will pay off
Agencies need to address and dispel negative images
EU impacts and expanding the audience
Executive Summary
The economy in reflection
The workforce is changing
Growing social regulation - increasing costs and concentration
Agency users are also PC and Internet users
Outsourcing boosts temping
Faltering steps
Margins falling
The changing face of supply
Adspend fails to keep pace with revenues
Plenty of potential for agencies
The future
Market Drivers
Underlying economic conditions remain favourable
Workforce picks up
Figure 1: UK employment trends, 1999-2004
Unemployment halves
Service sector continues to thrive
Figure 2: People in employment, by industry sector*, 2000-04
Women form key sector of the workforce
Figure 3: Workforce in employment in the UK, by gender and employment level, 1999-2004
Ageing working population
Figure 4: Trends and projections in total UK population, by age group, 1999-2009
Working for retirement
Agencies and older job seekers
Flexibility suits both employer and employee
Figure 5: Type of employment in the UK, by gender, 2000-04
The Internet is a universal benefactor
Use of PCs for the Internet and job boards
Figure 6: Usage of PCs, by gender and age group, 2003
Employment-related legislation
Favourable comparisons
Codes and conducts
Market Size and Trends
Figure 7: Number of employment agencies*, 1999-2004
Figure 8: Employment agencies market turnover, 1999/2000-2003/04
More moderate growth in 2003/04
Figure 9: Trends in the number of placements, 1999/2000-2003/04
Figure 10: Average turnover per branch, by number of branches, 2001/02 and 2002/03
Average placements per branch falls
Figure 11: Average number of placements per branch, by number of branches, 2001/02 and 2002/03
More staff required for administration
Figure 12: Total number of staff employed, 2000/01-2002/03
Market Segmentation
Search agencies
Outplacement
The complete package
Employers look for flexibility in uncertain times
Figure 13: The turnover mix of employment agencies, 2000/01-2003/04
Margins tumble as costs increase
Figure 14: Average industry gross margin, 1998/99-2002/03
Healthcare waxes as ITC wanes
Figure 15: Temporary staff on the payroll, by industry, 2001/02 and 2002/03
Figure 16: Permanent placements, by industry, 2001/02 and 2002/03
The Supply Structure
Acquiring strength
Impact of the Internet
Shifting to specialise
Size of agency branche
Figure 17: The average size of employment agency branches, 2001/02 and 2002/03
Company overview - turnover
Figure 18: Employment agency UK turnover, 2001 and 2003
Company profiles
Jobcentre Plus
Adecco
Hays Personnel Services
Manpower
Nestor Healthcare Group Ltd
Vedior
Spring Group
Corporate Services Group
Reed Executive plc
Pertemps Group
MPS Group International plc
Other companies
Advertising and Promotion
Spend on the job seeker
Figure 19: Main monitored advertising expenditure on recruitment*, 1999-2003
Figure 20: Main monitored media advertising expenditure by top recruitment agencies, 2003
Business to business is the focus
The Consumer
The employment search process
Figure 21: Means of job hunting, July 2004
Advertisements keep it close to home
Direct approach is best?
Room for growth
Demographic breakdown of means used to find a job
Figure 22: Means of job hunting, by age, gender and region, July 2004
Location, location, location
Socio-economic bias
Figure 23: Means of job hunting, by socio-economic group and ACORN categories, July 2004
Marital split
Figure 24: Means of job hunting, by marital status, household size, lifestage and Mintel's Special Groups, July 2004
Media usage
Figure 25: Means of job hunting, by media usage, commercial TV viewing and point of Internet access, July 2004
Specific appeal
Figure 26: Means of job hunting, by working status and household working patterns, July 2004
Experience with agencies
Figure 27: Success with agencies, July 2004
Attitudes: targeting potential agency users
Figure 28: Attitudes towards agencies, July 2004
The Consumer - The Search Dissected
Employment agencies typologies
Figure 29: Employment agencies typologies, July 2004
Strong media for the prime target market
The coldest target
Networkers prefer the personal route
A negative experience?
Assessing repertoire
Figure 30: Repertoire of means of job hunting, July 2004
One method for passive hunting
Television a prospect to raise awareness?
Desperately seeking?
Cross-analysis: typologies and search success
Figure 31: Typologies, by level of success with job search through an agency, July 2004
Cross-analysis: repertoire
Figure 32: Repertoire of means of job hunting, by specific means, July 2004
Cross-analysis: methods of searching
Figure 33: Cross-analysis of methods of job hunting, July 2004
Correlation analysis of methods of searching
Figure 34: Correlation analysis of methods of job hunting, July 2004
Detailed demographics - consumer typologies
Figure 35: Consumer typologies, by gender, age and region, July 2004
Figure 36: Consumer typologies, by socio-economic group and ACORN categories, July 2004
Figure 37: Consumer typologies, by marital status, household size, lifestage and Mintel's Special Groups, July 2004
Figure 38: Consumer typologies, by media usage, commercial TV viewing and point of Internet access, July 2004
Figure 39: Consumer typologies, by detailed working status and household working patterns, July 2004
Detailed demographics - repertoire of job-hunting methods
Figure 40: Repertoire of means of job hunting, by gender and age, July 2004
Figure 41: Repertoire of means of job hunting, by socio-economic group and ACORN categories, July 2004
Figure 42: Repertoire of means of job hunting, by marital status, household size, lifestage and Mintel's Special Groups, July 2004
Figure 43: Repertoire of means of job hunting, by media usage, commercial TV viewing and point of Internet access, July 2004
Figure 44: Repertoire of means of job hunting, by detailed working status and household working patterns, July 2004
The Future
Intrinsically tied
Migrating roles and offerings
In partnership with Jobcentre Plus
Big brother?
Networking and repertoire
Forecast
Slow but still increasing
Figure 45: Forecast of the number of employment agencies, 2004-09
Turnover shows modest growth in real terms
Figure 46: Forecast of employment agencies' turnover, 2004-09
Placements outpace
Figure 47: Forecast of the number of placements, 2004-09
Factors used in the forecast
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