Issue 15 – May 2013

FiguresReasons to be Cheerful as a Recruiter in 2013

Despite some cautious economic forecasts from certain quarters, 2013 has generally seen a positive start for recruiters across the market. With Spring already upon us, it would seem a good time to reflect on what has been a promising first quarter for the industry, and looks set to be an even better 8 months to follow. With Britain as a whole slowly creeping out of recession, led as always by a buoyant London marketplace, things have not looked so good for recruiters for quite some time. Here, we look at just a few of the reasons for recruiters to remain optimistic in their outlook for the months ahead:

The Budget: Whilst we may not have all benefitted personally from every aspect of a relatively conservative budget, it has certainly offered reasons to be optimistic as a recruiter. With George Osborne under pressure to stimulate further growth across the UK economy, he implemented a series of measures which should benefit the employment market. A stated aim to generate 600,000 new jobs this year, with six private sector roles created for every public sector role lost can only be good news. His investment in infrastructure should offer a shot in the arm for the beleaguered construction industry, and new policy with regards to the energy markets should have a similar effect. In addition to all this, the New Employment Allowance, and a cut in corporation tax due to take effect in 2015 will encourage expansion among any ambitious businesses in general by reducing the overall outlay on hiring.

UK Economic Growth: Although some of the overly optimistic economic growth forecasts have been subject to revision over the past couple of weeks, there was still enough good news to show that the recent signs of a recovery were not an anomaly. With a revised growth forecast of 0.6% for the UK economy in 2013 being released by the Office for Budget Responsibility at the end of March, expectations may be lower than they were, but recent figures have confirmed that we have avoided a potentially disastrous triple-dip recession. It may not be quite what many experts had hoped for, but it does reaffirm that the UK is in a position of relative stability in comparison to many of our Euro-zone neighbours.

Employer confidence returning: With the economy starting to show signs of recovery, employers are beginning to demonstrate a desire to recruit again. A survey at the start of the year by the Recruitment and Employment Federation (REC) reflected this fact, highlighting an expected increase in both permanent and temporary hires across employers. 56% of employers surveyed planned to increase their permanent headcount over the course of the year, with a further 43% at least expecting to maintain their current numbers. On the temporary side, 92% expected to either increase, or maintain their usage of agency staff. This positive outlook has been evident in the large number of boutique recruiters who, along with the major industry players, have been actively looking to add talent to their consulting teams to cope with the increased demand for their services.

UK Recruitment in general: The UK Recruitment market is currently enjoying a reputation second to none. With the recession having seen many weaker recruiters exit the market, standards across the industry are at an all time high, and the increased level of competition has forced firms to become ever more innovative in their ability to provide staffing solutions. This has led to a demand for Consultants to consistently meet the highest standards, and helped to regain client confidence in Recruiters in general. This has seen UK firms benefit internationally, and increasingly UK recruiters of all sizes are looking to expand their operations to include an overseas client base with huge success. These factors combined all equal a promising position for the industry as a whole, and offer a significant opportunity for recruiters looking to grow their business.

This positive outlook in general, coupled with multiple examples of recruiters posting promising first quarter figures for 2013 all point to a bright future. So, while we may not be quite back to the point of enjoying pre-recession levels of demand, there remain plenty of reasons to be cheerful as a recruiter in 2013!