The increasing rate of unemployment across the UK has failed to dampen the optimism of recruitment firms, with the latest figures revealing a growing market and widespread expansion plans.

A new report has found the vast majority of recruiters plan to grow their business in the next 12 months and are largely confident about the immediate future of the sector as a whole.

More than 60 of the biggest figures in the recruitment industry were questioned for the poll which found that an amazing 92% were expecting to expand, despite concerns around skills shortages, increasing red tape and job cuts.

The Saffery Champness Recruitment Business Survey – Financial Review 2006 found that 59% of agencies had increased the size of their temporary workforce, while 78% had increased the number of permanent placements compared with last year.

However, the survey also shows that recruiters are grappling with the same issues as their clients, with skills shortages and the growing cost of red tape hampering growth.
The funding crisis and subsequent rash of jobs cuts across the public sector is also seen as a key problem for recruiters in the coming months.

Martin Holden, head of the professional and consultancy group at the firm, urged recruiters to try harder to retain staff in order to make long-term growth more sustainable.

“While the sector is facing short-term pain from skills shortages and legislation, business owners remain confident that these issues will be overcome and long term aims will be achieved,” he said.
 
See the 1 November issue of Recruiter for full analysis.