According to Recruitment Agencies (Permanent), a new Market Update from Key Note, the permanent recruitment market grew year-on-year by 9% in 2015, the second consecutive period of significant annual growth in the market. The recent recovery in the permanent recruitments sector has been driven primarily by greater economic stability, providing businesses across the UK a more suitable environment to invest in permanent employees, rather than filling gaps in skills on an ad hoc basis via the temporary or contract recruitment options.
However, like the temporary market, there are fears that growth could by stymied by the reported skills shortage in the UK, with many businesses indicating considerable difficulties in recruiting in certain positions. According to reports, these shortages are largely impacting higher-skilled positions in the areas of IT, manufacturing and construction, and across virtually all STEM (science, technology, engineering and maths) related occupations. While the Government has moved to tackle the issues — investing in schemes to attract people to STEM subjects and moving to reform apprenticeships in the UK by involving organisation in development of apprentice standards for their specific sectors — the widening skills gap is likely to limit the supply of suitable candidates to certain positions, harming both agencies and in-house recruitment activities.
Despite this, the improving economic conditions in the UK, expected growth in overall employment, and rising confidence levels among businesses are expected to boost investment in permanent recruitment, at least over the next few years. While skills shortages and public-sector austerity could represent a barrier to growth, the market is nevertheless expected to perform strongly.
By Andrew Capstick
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Notes to editors:
Key Note’s 2016 Market Update, Recruitment Agencies (Permanent), analyses the market for permanent recruitment in the UK.
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