Operators in the Employment Placement Agencies industry list employment vacancies, refer applicants to jobs or directly place them in permanent employment. Industry revenue is expected to rise at a compound annual rate of 5% over the five years through 2021-22 to reach just under £16.9 billion. The industry benefited from high demand over the first half of the past five-year period as the economy expanded, with unemployment falling consistently over the three years through 2019-20. However, the industry was disrupted by an economic slowdown following the COVID-19 (coronavirus) outbreak, which caused substantial revenue decline in 2020-21. Revenue is forecast to rebound in the current year.
In 2020-21, many UK firms halted new hires following the coronavirus outbreak. UK job vacancies reached a historic low of 340,000 over the three months through June 2020, according to the Office for National Statistics. Vacancies have picked up in the current year as a result of the gradual reopening of the economy, reaching a high of 1.3 million over the three months through January 2022, and demand for industry services has surged as a result. This is expected to support a 21.4% rise in industry revenue in the current year.
The industry is expected to continue to grow over the five years through 2026-27, with industry revenue expected to expand at a compound rate of 5.2% to reach £21.7 billion. However, strong growth is partly a result of artificially heightened revenue growth in the first half of the period as the industry rebounds from its pandemic-induced decline. Potential job losses in the financial sector following the UK's exit from the European Union is likely to reduce demand from this sector, which is one of the industry's largest markets. Online job-search websites will likely remain a minor threat to the industry, as the personalised nature of the industry's services ensures that it will remain relevant.
Industry overview provided by IBISWorld.
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