Massive congestion among the UK’s biggest recruitment agencies is heaping pressure on the managers of these firms, according to a new study.

The study, from publishing firm Plimsoll Publishing, found that 200 companies now control 77% of the market, an increase of 4% on two years ago.

Of the 200 firms surveyed, 47 reported no sales increases, 41 were selling less than two years ago, 123 firms were failing to increase sales at the same rate of investment and 109 had increased debt to retain their place in the market.

David Pattison, senior analyst with Plimsoll, said: “The recent slow down in the UK economy will only accelerate a long standing problem in the market. Following the last few years, which have been largely profitable, business leaders have been keen to invest heavily, and in turn have borrowed heavily. Yet, due to the turbulent economic climate of 2008 they are seeing very little by way of return. This ambitious investment strategy has left some companies in severe financial danger, and as a result 21 companies have been awarded a danger rating in this study as result of their failing business strategy.”