Prospects for the recruitment industry are good, says Dodd

Private job sector creation continued to power ahead in February, according to an influential business survey.
Thu, 6 Mar 2014Private job sector creation continued to power ahead in February, according to an influential business survey.  

The employment sub index of Markit’s composite purchasing mangers’ index (PMI) rose to 56 in February, up from 55.7 in January, indicating that jobs were created at the fastest rate since the research began in 1998. All numbers above 50 point to growth in employment and hiring.

Chris Williamson, chief economist at Markit, says: “The brightening outlook has prompted firms top take on staff at a rate not seen before over the PMI survey’s 16-year history.”

The UK’s overall index was 58.6 in February, slightly down from 59.1 in January.

The PMI index for the services sector was little changed at 58.2 compared with 58.3 in the previous month.

“Sustained growth in the services sector means it remains the most important driver of the economic recovery,” says Williamson.

Sue Dodd, director of Agile Intelligence, compiler of Recruiter’s HOT 100 list, says that the figures are further evidence “that the prospects for the recruitment industry are good.”

Last month Recruiter reported that vacancies were at their highest level since before the start of the recession at the end of 2008.

“I am positive for this year,” says Dodd, adding, “the industry is in better shape coming out of this slowdown than on previous occasions.”

Dodd agrees that the services sector is the major driver of growth. “The feeling is that the professional services sector is picking up and that comes primarily from services,” she says.

Dodd says that recruiters who supply into the professional services, such as finance, though not into banking, and accountancy are set to benefit. But she says there is also growth in areas such as marketing and legal.

Dodd says that companies such as Impellam and Randstad who also do “fairly general recruitment” are already beginning to see the benefits of the pick up in professional services.

Dodd adds that as the jobs market continues to improve, “I would imagine we will see a fairly decent recovery on the perm said as well as on the temp side”.

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