Up to 9,333 jobs could go at UK recruitment agencies over the next year, according to new research.

The research, from financial assessment firm Plimsoll, found that 9,333 jobs could go as companies seek to get costs in line with sales, almost a fifth of the companies surveyed are already running at a loss, while the research showed that companies need to aim for at least £258,000 sales per employee in order to stay competitive.

David Pattison, senior analyst at Plimsoll, said: “The 165 companies we have identified as in danger need to act now if they are to survive. It very important they review their entire business cost base and take action now to significantly reduce their outgoings. Whilst job losses are undoubtedly bad news for any company, such decisive action may be called for to guarantee the ultimate survival of the business, even if this means the business is 30-50% smaller than it was.”