Recruitment Agencies Take the Strain Reveals new REC Research

New research from the Recruitment and Employment Confederation’s (REC) 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.

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
• Agency workers’ satisfaction increased across all sectors and regions

The Key Recruitment Trends 2007 report isn’t out yet but will be published this month. For more information contact Maggie Pattinson or click here to visit their website.