Table of Contents
Executive Summary
-
- Impact of COVID-19 on recruitment market
-
- Figure 1: Short-, medium- and long-term impact of COVID-19 on the recruitment market, 2021
- Market size and forecast
-
- Figure 2: UK recruitment market value, 2017-2026, (£ billion)
- Market segmentation
-
- Figure 3: UK recruitment market value by segment, 2017-21, (£ billion)
- Companies and brands
- Industry structure
- Company profiles
Issues and Insights
-
- As the market continues to evolve, recruiters will increasingly take on a consultative role
- Shift towards core competencies has raised reliance on outsourcing but formalisation of temporary and contract work could deter long-term usage
- Government support schemes put economy in a position for a quick return to hiring
- Temporary sector hardest hit as businesses make use of flexibility to save costs
- Hiring is resuming as COVID-19 recedes but the return of social distancing measures remains a possibility
- Digitisation is ushering in the use of video in the recruitment process
- Brexit and IR35 are bringing regulatory and administrative costs to the recruitment sector
Market Size
-
- Impact of COVID-19 on the recruitment market
-
- Figure 4: Short-, medium- and long-term impact of COVID-19 on the recruitment market, 2021
- The market
- COVID-19 disruption ushered in hiring uncertainty but state support has secured the chance for a fast recovery
-
- Figure 5: UK recruitment market size, 2017-21, (£ billion, current prices)
- COVID-19 is driving uptake of digitisation processes
Market Segmentation
-
- Overview
-
- Figure 6: UK recruitment market value by segment, 2017-21, (£ billion)
- Analysis of the permanent recruitment segment
-
- Figure 7: UK net migration by citizenship, 2015-2020, (number of persons, thousands)
- Analysis of the temporary recruitment segment
- Regulatory burden on temporary recruitment
Market Forecast
-
- Speed of temporary segment growth will depend on the prevalence of COVID-19
-
- Figure 8: UK recruitment market forecast, 2022-26, (£ billion)
Market Trends
-
- Impact of COVID-19 on practices in the recruitment sector
- Social distancing has boosted the use of video in the recruitment process
- The impact of COVID-19 on the labour market
-
- Figure 9: Ratio of full-time workers to part-time workers in the UK economy (aged 16+), Q1 2016-Q1 2021, (full time: part time ratio)
- Rise in unemployment predominantly affected part-time positions
- Rebound in vacancies suggests economic damage from COVID-19 is temporary
-
- Figure 10: UK job vacancies, Q1 2019 -Q1 2021, (thousands of vacancies)
- Figure 11: UK job vacancies, Q1 2008-Q1 2010, (thousands of vacancies)
- Impact of COVID-19 on employment by industry
-
- Figure 12: Change in the number of employees by industry between September 2019 and 2020, and December 2019 and 2020 (% change)
- The growing prominence of AI and analytics
Market Drivers
-
- Brexit’s impact on services and regulatory changes will create demand for consultative services
- Changes in regulation relevant to recruitment
- Changes to immigration and foreign workers’ rights
- Introduction of IR35 will increase short-term admin and penalise lax operators in the temporary sector
Companies and Brands – Key Takeaways
-
- Brexit-uncertainty bust could turn into a consultative boom for permanent agencies
- Recruiters cut costs in response to COVID-19
Industry Structure
-
- Changes in industry structure
-
- Figure 13: Changes in the industry structure of activities related to the recruitment market, 2016-20, (number of businesses and outlets)
-
- Figure 14: Changes in the industry structure of activities related to the recruitment market, 2016-20, (annual % change in number of businesses and outlets)
- Changes in employment structure
-
- Figure 15: Changes in the employment structure of activities related to the recruitment market, 2019 and 2020, (number of outlets, % annual change)
-
- Figure 16: Changes in the employment structure of activities related to the recruitment market, 2019 and 2020, (% share of all outlets)
- Changes in turnover structure
-
- Figure 17: Changes in the turnover structure of activities related to the recruitment market, 2019 and 2020, (number of businesses, % annual change)
- Figure 18: Changes in the turnover structure of activities related to the recruitment market, 2019 and 2020, (% share of all businesses)
Company Profiles
-
- Adecco UK
- Recent company activity
- Financial activity
-
- Figure 19: Financial analysis of Adecco UK, 2015-2019, (£ million and %)
- Hays
- Recent company activity
- Financial activity
-
- Figure 20: Financial analysis of Hays Specialist Recruitment Ltd, 2016-20, (£ million and %)
- Page Group
- Recent company activity
- Financial activity
-
- Figure 21: Financial analysis of Page Group, 2016-20, (£ million and %)
- Randstad
- Recent company activity
- Financial activity
-
- Figure 22: Financial analysis of Randstad CPE Limited, 2015-19, (£ million and %)
- Reed
- Reed in Partnership
- Financial information
-
- Figure 23: Financial analysis of Reed in Partnership, £ million, 2016-20
- Reed Online
- Financial information
-
- Figure 24: Financial analysis of Reed Online, £ million, 2016-20
- Reed Specialist Recruitment
- Financial information
-
- Figure 25: Financial analysis of Reed Specialist Recruitment, £ million, 2016-20
Appendix – Data Sources, Abbreviations and Supporting Information
-
- Abbreviations
- Methodology
Further Sources and Contacts
-
- Trade associations
- Chartered Institute of Personnel and Development
- Recruitment and Employment Confederation
- Association of Professional Staffing Companies
- Recruitment Society
- Trade magazines
- Human Resources
- Online Recruitment Magazine
- People Management
- Personnel Today
- Recruiter
- Recruitment International
- Trade events
- Recruitment Agency Expo
Back to top