2021
9
UK Recruitment Market Report 2021
2021-07-07T04:13:38+01:00
OX1045901
1495
140069
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Report
en_GB
“Recruitment plays a critical role in matching skills with the businesses in need of them. The pandemic and ensuing social distancing measures heavily impacted demand for recruitment, as businesses shelved…

UK Recruitment Market Report 2021

£ 1,495 (Excl.Tax)

Description

Providing the most comprehensive and up-to-date information and analysis of the UK Recruitment market, including the behaviours, preferences and habits of the consumer.

The pandemic has had a notable impact on the recruitment sector, with the economic uncertainty created leading businesses across the economy to postpone hiring decisions, therefore reducing demand for recruitment services.

Despite the size of the crisis, government support has protected the economy from the worst outcome, preventing widespread business failures and mass unemployment. This has allowed the market to bounce back, evidenced by the recovery of employer sentiment and a rapid recovery in the number of vacancies in the economy.

The impact of COVID-19 appears to have fallen more squarely on the temporary segment of the market, which is typically more vulnerable to fluctuations in business confidence and economic growth due to its shorter-term contractual nature. Whilst the permanent sector has flagged along with areas of the economy most impacted by the pandemic, it has also benefitted from sustained demand for skills in the life sciences and health care sectors of the economy.

Recruiters adapted to the pandemic rapidly, building off existing trends towards digitisation to include greater use of video. These developments are likely to galvanise the use of AI in the sector, as a shift in favour of online practices will speed up the development and adoption of the technology for candidate search and screening in the near term.

Read on to discover more details or take a look at all of our UK Industry market research.

Quickly understand

  • The impact of COVID-19 on the recruitment market.
  • Market size, segmentation and forecast of the recruitment market.
  • How COVID-19 is reshaping recruitment practices and digitising the recruitment process.
  • The impact of Brexit on services and what this means for recruiters.
  • How IR35 changes will affect recruiters.

Covered in this report

Brands: Adecco UK, Hays, Page Group, Randstad, Reed.

Expert analysis from a specialist in the field

Written by Francesco Salau, a leading analyst in the Food & Drink sector, his extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

Recruitment plays a critical role in matching skills with the businesses in need of them. The pandemic and ensuing social distancing measures heavily impacted demand for recruitment, as businesses shelved hiring plans in reaction to the severe rise in uncertainty. As the economy has adjusted, vacancies have rebounded rapidly and recruiters have adapted to the next normal by digitising their processes – which, in turn, has opened the use of video and paved the way for more widespread uptake of artificial intelligence.
Francesco Salau
B2B Analyst

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • COVID-19: market context
    • Economic and other assumptions
    • Covered in this Report
  2. Executive Summary

    • Impact of COVID-19 on recruitment market
      • Figure 1: Short-, medium- and long-term impact of COVID-19 on the recruitment market, 2021
    • Market size and forecast
      • Figure 2: UK recruitment market value, 2017-2026, (£ billion)
    • Market segmentation
      • Figure 3: UK recruitment market value by segment, 2017-21, (£ billion)
    • Companies and brands
    • Industry structure
    • Company profiles
  3. Issues and Insights

    • As the market continues to evolve, recruiters will increasingly take on a consultative role
    • Shift towards core competencies has raised reliance on outsourcing but formalisation of temporary and contract work could deter long-term usage
    • Government support schemes put economy in a position for a quick return to hiring
    • Temporary sector hardest hit as businesses make use of flexibility to save costs
    • Hiring is resuming as COVID-19 recedes but the return of social distancing measures remains a possibility
    • Digitisation is ushering in the use of video in the recruitment process
    • Brexit and IR35 are bringing regulatory and administrative costs to the recruitment sector
  4. Market Size

    • Impact of COVID-19 on the recruitment market
      • Figure 4: Short-, medium- and long-term impact of COVID-19 on the recruitment market, 2021
    • The market
    • COVID-19 disruption ushered in hiring uncertainty but state support has secured the chance for a fast recovery
      • Figure 5: UK recruitment market size, 2017-21, (£ billion, current prices)
    • COVID-19 is driving uptake of digitisation processes
  5. Market Segmentation

    • Overview
      • Figure 6: UK recruitment market value by segment, 2017-21, (£ billion)
    • Analysis of the permanent recruitment segment
      • Figure 7: UK net migration by citizenship, 2015-2020, (number of persons, thousands)
    • Analysis of the temporary recruitment segment
    • Regulatory burden on temporary recruitment
  6. Market Forecast

    • Speed of temporary segment growth will depend on the prevalence of COVID-19
      • Figure 8: UK recruitment market forecast, 2022-26, (£ billion)
  7. Market Trends

    • Impact of COVID-19 on practices in the recruitment sector
    • Social distancing has boosted the use of video in the recruitment process
    • The impact of COVID-19 on the labour market
      • Figure 9: Ratio of full-time workers to part-time workers in the UK economy (aged 16+), Q1 2016-Q1 2021, (full time: part time ratio)
    • Rise in unemployment predominantly affected part-time positions
    • Rebound in vacancies suggests economic damage from COVID-19 is temporary
      • Figure 10: UK job vacancies, Q1 2019 -Q1 2021, (thousands of vacancies)
      • Figure 11: UK job vacancies, Q1 2008-Q1 2010, (thousands of vacancies)
    • Impact of COVID-19 on employment by industry
      • Figure 12: Change in the number of employees by industry between September 2019 and 2020, and December 2019 and 2020 (% change)
    • The growing prominence of AI and analytics
  8. Market Drivers

    • Brexit’s impact on services and regulatory changes will create demand for consultative services
    • Changes in regulation relevant to recruitment
    • Changes to immigration and foreign workers’ rights
    • Introduction of IR35 will increase short-term admin and penalise lax operators in the temporary sector
  9. Companies and Brands – Key Takeaways

    • Brexit-uncertainty bust could turn into a consultative boom for permanent agencies
    • Recruiters cut costs in response to COVID-19
  10. Industry Structure

    • Changes in industry structure
      • Figure 13: Changes in the industry structure of activities related to the recruitment market, 2016-20, (number of businesses and outlets)
      • Figure 14: Changes in the industry structure of activities related to the recruitment market, 2016-20, (annual % change in number of businesses and outlets)
    • Changes in employment structure
      • Figure 15: Changes in the employment structure of activities related to the recruitment market, 2019 and 2020, (number of outlets, % annual change)
      • Figure 16: Changes in the employment structure of activities related to the recruitment market, 2019 and 2020, (% share of all outlets)
    • Changes in turnover structure
      • Figure 17: Changes in the turnover structure of activities related to the recruitment market, 2019 and 2020, (number of businesses, % annual change)
      • Figure 18: Changes in the turnover structure of activities related to the recruitment market, 2019 and 2020, (% share of all businesses)
  11. Company Profiles

    • Adecco UK
    • Recent company activity
    • Financial activity
      • Figure 19: Financial analysis of Adecco UK, 2015-2019, (£ million and %)
    • Hays
    • Recent company activity
    • Financial activity
      • Figure 20: Financial analysis of Hays Specialist Recruitment Ltd, 2016-20, (£ million and %)
    • Page Group
    • Recent company activity
    • Financial activity
      • Figure 21: Financial analysis of Page Group, 2016-20, (£ million and %)
    • Randstad
    • Recent company activity
    • Financial activity
      • Figure 22: Financial analysis of Randstad CPE Limited, 2015-19, (£ million and %)
    • Reed
    • Reed in Partnership
    • Financial information
      • Figure 23: Financial analysis of Reed in Partnership, £ million, 2016-20
    • Reed Online
    • Financial information
      • Figure 24: Financial analysis of Reed Online, £ million, 2016-20
    • Reed Specialist Recruitment
    • Financial information
      • Figure 25: Financial analysis of Reed Specialist Recruitment, £ million, 2016-20
  12. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Methodology
  13. Further Sources and Contacts

    • Trade associations
    • Chartered Institute of Personnel and Development
    • Recruitment and Employment Confederation
    • Association of Professional Staffing Companies
    • Recruitment Society
    • Trade magazines
    • Human Resources
    • Online Recruitment Magazine
    • People Management
    • Personnel Today
    • Recruiter
    • Recruitment International
    • Trade events
    • Recruitment Agency Expo

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

Market

Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.

Consumer

Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

Brand/Company

Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

Data

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*databooks not available with UK B2B Industry reports.

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