Tue, 28 Oct 2014The value of the UK’s recruitment industry has surpassed its pre-recession peak, recording total revenue of £28.7bn by the end of the financial year 2013/14, according to research published today by the Recruitment and Employment Confederation (REC).

Total industry turnover increased by 8.2% on the previous year’s total, £26.5bn (2012/13), and exceeded the previous record high of £27bn achieved in 2007/08. Growth in revenue was driven by an increased volume of activity and by a fall in the proportion of work conducted in return for low margins.

According to the REC, the data revealed that in 2013/14, recruiters helped more than 630,000 people find a new permanent job. On any given day, 1.15m people work on a temporary or contract assignment secured via a recruitment agency.

The information was drawn from the survey responses of 585 recruitment firms.

Other headline findings from the REC’s Recruitment Industry Trends Survey 2013/14 include:

• £26bn, 91% of the total industry revenue of £28.7bn, came from temporary/contract business and 9%, or £2.7bn, from permanent business

• A shortage of candidates with appropriate levels of skills and experience is the top concern among agencies working in permanent recruitment, with 34% of  recruiters saying this is an issue for them (up from 25% in 2012/13 and 14% in 2011/12).

• Turnover for temporary/contract business increased by 8.2% year-on-year

• More than half, or 56.6%, of all temporary and contract assignments are for 12 weeks or more.

• Four in 10 agencies, or 41%, cited compliance and legislation as a concern, making it the survey respondents’ most frequently mentioned concern

The Recruitment Industry Trends Survey 2013/14 is the seventh annual industry assessment of its kind published by the REC. The  report is available online at www.rec.uk.com/trends and is free to download for all REC members.