date posted: 03-02-2017


The recruitment sector in the UK has been growing steadily. In fact last year saw the highest number of new recruitment businesses opening their doors. According to a recent report published on 4,529 new recruitment businesses were registered between January and December 2016, an increase of 13.7% over the same period in 2015.


The industry has grown by a staggering 56% over the last five years and is now worth an estimated £35.1 billion a year. This is fantastic news for the sector but the recruitment sector hasn’t just grown it has evolved. The industry has changed dramatically over the last decade. 


One significant change which we believe has supported the growth of the sector is the growth in the use of umbrella companies by recruitment agencies. Umbrella companies are used by recruitment agencies of all shapes and sizes but for new recruitment start ups and smaller agencies the support of a reliable umbrella service can be immeasurable.    


Advances in technology have also had a huge impact. The way people search for jobs has changed, how many people now would really turn to a newspaper to look for their next job or contract?  Recruitment happens online, job boards, search engines and social networks such as LinkedIn and Twitter have all transformed the way recruiters work and the way job seekers approach their searches. 


Recruitment has always been a fast paced industry but technology has enabled the sector to pick up even more pace. Face to face communication is still really important in the recruitment sector but text messaging, emailing and online advertising have made the whole process quicker. When was the last time a CV arrived in an envelope through the letterbox? 


These changes have made it possible for new recruitment businesses to set up and start trading almost overnight and with minimal start up costs, equipment or infrastructure. With a reliable umbrella company in place a huge amount of the administration and paperwork involved in the recruitment process is taken care of freeing up the business owner to focus on securing new business and placing candidates. A reputable umbrella company for recruitment agencies will also provide recruiters with peace of mind that they are operating compliantly. 


Of course demand from employers for recruitment services is another key factor in the continued growth of the sector. Reliance from employers on external recruiters to fill permanent and temporary vacancies particularly in areas where there are skills shortages is likely to continue. We don’t think growth in the recruitment sector will slow down anytime soon!      

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