Key Note Media Centre
Temporary Recruitment Sector Resumes Growth After Three Years of Decline...
The UK temporary recruitment industry resumed growth in 2010/2011 after falling for 3 years to 2009/2010. In a new Market Report -- Recruitment Agencies (Temporary & Contract) -- market intelligence provider Key Note forecasts that the value of the temporary recruitment market will grow by 6.2% in 2011/2012.
Currently, the economic uncertainty is a major concern for employers; according to a recent study, nearly half of UK organisations reduced their resourcing budgets in 2011 as a result of the current economic climate. Meanwhile, temporary and contract recruitment agencies appear to have benefited from the public-sector hiring freeze, with hiring levels for temporary employees by public organisations rising in the first quarter of 2012.
In the year ending March 2011, the value of the temporary recruitment market rose by 24.2% and the number of temporary placements made increased by 19.3%, compared with the previous 12 months. The largest sectors of the market were: industrial and blue collar; secretarial and clerical; and computing and IT. These three categories represented around half of the temporary recruitment market by volume, and have come to dominate the industry as many other sectors (such as hotels and catering) have seen their numbers fall.
The immediate outlook for the temporary recruitment sector is positive, according to Key Note, and the sector is expected to be boosted by the upcoming London 2012 Olympics. Key Note projects that, between 2011/2012 and 2015/2016, the UK temporary and contract staff recruitment market will grow by 18.3%.