Data released by Companies House has revealed that a record number of recruitment agency company registrations took place in the UK in 2018.

Data released by Companies House has revealed that a record number of recruitment agency company registrations took place in the UK in 2018.

8,488 new recruitment businesses were registered last year – an incredible 46% increase compared to 2017. These figures have taken the total number of agencies in the UK to an all-time high.

Demand for recruiters has naturally gone up as the UK’s job market continues to flourish.

In December 2018, figures released by the Office for National Statistics (ONS)showed that the UK continues to enjoy the best jobs market it has experienced in decades.The unemployment rate currently stands at a near-record 40-year low and the employment rate is at a joint record of 75.7%.

Figures also show that since 2010, 3.3 million people have entered work. This works out at an average of an incredible 1,000 people finding employment every day.

Speaking about the thriving recruitment industry, Simon Adcock, Head of Professional Services for HSBC UK commented:

“Despite current uncertainty, the recruitment industry’s focus on quality of service and its enthusiasm for technological innovation has seen it continue to flourish, boosting the wider UK economy. In a world where the way we work is becoming ever more flexible, the role of the recruiter in connecting people to opportunities and employers to people has never been as important.”

The future of recruitment

While many worried how the recruitment industry would fare with all the latest technology updates, it has well and truly surpassed expectations.

The REC’s annual Recruitment Industry Trends report for 2017/18 showed that the total industry turnover has reached £35.7 billion. It has also predicted that the UK’s recruitment industry will grow by 4% by the end of 2019, a further 4.5% by 2020 and then another 5% by 2021.

Commenting on the report, REC chief executive Neil Carberry said:

“It has been an extraordinary year for recruitment and recruiters. Tight labour markets and quickly shifting skills needs have driven the growth of the industry – but only because recruiters have adapted swiftly to changing times. We see this increased value for clients reflected in our monthly survey feedback – recruitment is a key part of the UK’s world-leading professional services sector.”

He continued:

“We should celebrate an industry which boosts the economy and transforms candidates’ lives every single day.”

Candidate experience is at the forefront of employers’ minds thanks to the current skills shortage. 42% of employers say they worry they won’t be able to find the talent they need and 72.8%are struggling to find relevant candidates. These statistics highlight the fact that the role of the recruiter has never been more important.

As well as helping to find candidates in the first place, the recruitment process can have a huge impact on whether or not people choose to work for an organisation. More than half,(58%) of candidates who have had a negative experience with a company’s recruitment process said they would not apply again in the future. Furthermore, those who enjoy and have a positive candidate experience, are 38% more likely to accept a job offer.

If you’d like help recruiting top candidates into your organisation, please feel free to contact Alpha and we’ll be more than happy to help.