New Report Forecasts Steady Growth in the UK Recruitment Agencies (Temporary & Contract)...

New Report Forecasts Steady Growth in the UK Recruitment Agencies (Temporary & Contract) Market Between 2008 and 2012

DUBLIN, Ireland--(Business Wire)--
Research and Markets
(http://www.researchandmarkets.com/reports/c83274) has announced the
addition of Recruitment Agencies (Temporary & Contract) Market Report
2008 to their offering.

This Key Note Market Report analyses the UK market for temporary
and contract recruitment. It covers those organisations -- such as
recruitment consultancies, recruitment companies and employment
agencies -- that recruit on behalf of clients searching for temporary
positions. At present, the market's turnover is at a record high, but
it faces many challenges to remain in this position of strength. The
market for temporary and contract workers was worth GBP 23.2bn in the
year to March 2007, according to the Recruitment & Employment
Confederation (REC). This represents a rise of 7.4% on the previous
year. 2007 was a good year for the market, and the so-called 'credit
crunch' does not yet appear to have affected recruitment firms.
Overall, the market has become a candidates' market, with applicants
appearing to be more selective than ever before, moving from one
recruitment firm to another to obtain the best deal.

The market is split into two main sectors, temporary recruitment
and contract recruitment. However, there are no industry or government
statistics that supply separate figures for these two sectors.
Therefore -- although definitions for these two sectors are provided
(see Chapter 1 -- Market Definition) -- for the purpose of this Key
Note Market Report, the market is divided into 11 economic and
professional sectors. These sectors are: accounting/financial;
computing/IT; construction; drivers; education; hotel/catering;
industrial/blue collar; nursing and other medical;
professional/managerial; secretarial/clerical; and
technical/engineering.

There were many acquisitions and mergers in 2007, and these have
included private-equity ventures. It was also a good year for new
independent firms. Although most of the big firms in the top 20 are
managing well in this new expanding market, there are signs that some
of them are losing market share and profit margins.

Profitability in the industry as a whole is coming under pressure.
There is still concern about the Agency Workers Directive, which has
been floated once again by the European Commission. The continuing tax
changes for contractors are another area of concern.

However, the major issue is candidate shortage. A significant
change is taking place in the composition of the UK workforce, which
was becoming evident several years ago, which means there are skills
shortages in several UK industries. Temporary or contract work answers
this need to some extent, but there are shortages even in the number
of suitably skilled and qualified temporary and contract workers.

Key Note forecasts steady growth in the market between 2008 and
2012. However, recruitment firms are facing increasing costs pressures
and more competition, and there are still some doubts about just how
much the economy will grow in 2008. Although there is no doubt that
the market will grow, this growth might be lower than expected.

Companies Mentioned:

Allied Healthcare Group Ltd

The Best Connection Group Ltd

The Capita Group Plc

The Corporate Services Group Plc

Hays Plc

Kelly Services (UK) Ltd

Randstad Employment Bureau Ltd

Spring Group Plc

For more information visit
http://www.researchandmarkets.com/reports/c83274.

Research and Markets
Laura Wood, Senior Manager
Fax: +353 1 4100 980
press@researchandmarkets.com

Copyright Business Wire 2008