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Recruitment Agency Market Still Suffering from Recession to Decline 4.2% in 2010 Finds Report Buyer - ReportBuyer.com, the online destination for business intelligence for major industry sectors, has added a new report
Recruitment Agency Market Still Suffering from Recession to Decline 4.2% in 2010 Finds Report Buyer

 

PRZOOM - /newswire/ - London, United Kingdom, 2010/03/04 - ReportBuyer.com, the online destination for business intelligence for major industry sectors, has added a new report.

   
 
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The report “Recruitment Agencies (Permanent) - UK Market Report 2010” examines the permanent appointments sector of the recruitment market. It covers firms that are engaged in both general and executive permanent appointments. The recruitment industry is still reeling from the recession. From the beginning of 2008 to August/September 2009, the market was bleak for most recruitment firms, including executive search firms, as the recession forced many companies to freeze their recruitment activities in an effort to cut costs. Even as the economy begins its slow recovery, companies will remain cautious for some time to come, and will be hesitant to create new positions or replace any staff lost during the recession. The industry is now much smaller than it was before the recession, with fewer companies operating in the market; although, since September 2009, recruitment firms have noticed a slight improvement in market conditions, meaning that the worst may be over. However, the recruitment industry has a lot of ground to make up to return the market to where it was not just before the recession, but 5 years ago.

In the year ending March 2009, the value of the permanent recruitment market stood at £2.61bn, and the number of permanent placements made was 582,803. These figures represent a massive drop of 39% and 19.8%, respectively, compared with the previous 12 months. This slump in demand has been devastating for recruitment firms, and every sector of the market has been affected, especially jobs in financial services, construction, property and retailing. Some markets - such as driving and industrial/blue collar - have almost disappeared. Ironically for a recession that was largely the result of failures in the banking system, the sector to show the first signs of recovery in 2009 was banking.

The 95 page report forecasts that the value of the permanent recruitment market will decline by a further 4.2this year, but it will begin a gradual recovery thereafter. The market's value is not only dependent on the demand for new permanent staff, but also on the willingness of clients to use recruitment firms; therefore, it will also be influenced by fee rates, which are unlikely to rise in 2010, and may even be squeezed further. Unemployment is forecast to continue rising, even as the recovery begins to take off.

 
 
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Recruitment Agency Market Still Suffering from Recession to Decline 4.2% in 2010 Finds Report Buyer

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