According to Recruitment Agencies (Temporary & Contract), a new Market Update from Key Note, the UK temporary and contract recruitment grew by 2.5% in 2015. The recruitment market has seen ongoing growth in recent years, benefitting from demand for flexible employment options during the recent period of economic turbulence. However, as a result of greater economic stability over the last few years, businesses are increasingly willing to invest in permanent placements. The stronger permanent recruitment sector has had a slightly detrimental impact on temporary recruitment, constraining annual growth somewhat.
While the recruitment market has seen continued growth, there is widespread concern of skills shortages in numerous professions across the UK market. Various businesses have expressed considerable difficulties in recruiting suitable candidates for certain positions, mainly those that require a higher level skills set in the areas of IT, manufacturing and construction, and other STEM (science, technology, engineering and mathematics) related positions. This is currently a major worry across agencies, human resources (HR) departments and others engaged in recruitment. Although it is possible that difficulties in recruiting by
in-house departments may drive demand for employment agencies, the widening skills gap is likely limiting the supply of appropriate candidates by agencies.
While the Government has moved to address the skills shortage, through investment and reform to the apprenticeships framework, it is expected to remain a key issue in the recruitments market for the foreseeable future. This, combined with, depressed demand from the public sector, particularly, for temporary positions, is expected to constrain growth in the market further over the next few years. Nevertheless, Key Note forecasts future growth, primarily due ongoing, constant demand for flexibility in the workforce and seasonal demand, alongside general growth in total employment.
By Andrew Capstick
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Notes to editors:
Key Note’s 2016 Market Update, Recruitment Agencies (Temporary & Contract), analyses the market for temporary and contract employment in the UK.
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