Recruitment agencies take strain in uncertain job market, reveals new REC research

New research from the Recruitment and Employment Confederation's Research Unit has shown agencies are beginning to pick up most of the strain generated by the current uncertainty within the jobs market.

The Key Recruitment Trends 2007 report, which contains the key findings of last year's monthly tracking research, identified the fact that agencies were acting as "shock absorbers" in providing the labour market with flexibility during the present economic period.

Overall, the review results showed 2007 was another strong year for the recruitment industry with most indicators of satisfaction, performance and efficiency generally ahead of those recorded in 2006.

However, towards the end of the review period, significant changes in some of the data recorded signified a possible slowdown after a sustained period of economic growth.

Roger Tweedy, the REC's Head of Research, said of the findings:

"With the Unit's tracking surveys in place, commentators and analysts will be able to monitor closely how the 'agency model' works to support the economy during a period of uncertainty.

"The results so far show that the agencies are acting as 'shock absorbers' in providing the labour market with flexibility that both cushions immediate impact and enables prompt recovery. This will be examined and assessed over the coming months."

He added that at this crucial time when agencies will be playing a critical role in economic progress, policy-makers and legislators should think very carefully before adding any extra pressures on agencies when they may already be starting to feel the "commercial heat."

Key trends identified in the 2007 review include:

• Employers continuing to use the same average number of agencies (2.5) as in 2006 although usage increased slightly towards the year's end
• Employers were less likely to “always use” an agency than they were in 2006, which was the case across most sectors and regions, especially among SMEs. Again there were signs of this trend reversing towards the end of the year
• During 2007, employers across most sectors increased the use of temporary agency workers as a proportion of their overall workforce
• Employers in most sectors were significantly more satisfied with their main agency in 2007 - a 20 point increase - compared to the previous year
• The number of workers registered with agencies increased over the period while the number on assignment per branch remained broadly static
• The number of workers registered with an agency varied considerably by sector and region
• Agency workers generally found it easier to find work except in London
• The average length of individual assignments reduced over the period
• Agency workers' satisfaction increased across all sectors and regions
• The proportion of agency workers who were looking for permanent roles continued to decline throughout 2007 to less than 50 per cent by the end of the year.

The Key Recruitment Trends 2007 will be published this month. For more information and advance orders, please contact Maggie Pattinson on 020 7009 2159 or maggie.pattinson@rec.uk.com

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For further information, please contact Alison Henderson, Press Manager, the REC, 020 7009 2157/REC Press Office, 0845 3700655.

About the Key Recruitment Trends 2007
The tracking research is sponsored by a Steering Group of leading recruiters. Current members include: Adecco, MatchTech, Meridian, Pertemps, Randstad and Vedior.

Fieldwork and analysis are undertaken by BMG Research. Cordoba Consulting provides additional analysis and interpretation of the findings.

The results are used widely by government, business analysts and recruiters to inform their planning and decision-making processes. The research is described by Steven Kirkpatrick (MD of Adecco in the UK) as 'the recruitment industry's missing link, credible factual industry data'.

About the REC's Industry Research Unit
The unit was launched in late 2005 with its aim being to offer better research on the UK recruitment industry. Topics covered by the unit so far have included the 2006 Recruitment Industry Census; Managed Services; the Annual Salary and Benefits Survey; the Annual Industry Turnover and Key Volumes Survey plus a 360 degree Tracking Survey.

About the REC
The REC, the Trade Association of the Year, is the representative body for the UK's £26.6 billion private recruitment and staffing industry with a membership comprising more than 8,000 corporate businesses and over 6,000 recruitment consultants. All members must abide by a Code of Professional Practice.

02.04.08

E-mail: administrator@recruitmenttimes.co.uk