Worldwide Business Information and Market Reports
ISBN 1-85765-723-3
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Key Note estimates that at mid-1997, the core of
the UK employment agency industry consisted of some 7,500 businesses, which
together operate 10,800 offices. In 1996, these businesses produced sales of
£10.2bn, up from £8.5bn in 1995. The sales were made up of 95 percent from
invoiced sales for temporary and contract workers, and 5 percent from fees for helping
to place people in permanent jobs.
The employment agency business is
booming and reaching a new peak. This is likely to continue for another 2 years
at least. Permanent business is growing alongside business in temporaries
(temps) and contract workers. Sales are being held back only by a shortage of
qualified people in the desired age ranges.
The arrival of `New' Labour
in government is likely to herald a climate of greater caution among employers
and agencies. Temps and contract workers could become more expensive to employ
and more risky for agencies to handle. Firms could become more reluctant to
take on permanents.
Barriers to entry to the industry remain low. A
constant stream of new entrants threatens saturation in some sectors, together
with serious competition on price.
Big agencies are becoming bigger
through mergers and acquisitions, but the UK remains a highly fragmented
market.
Text © 1997 Key Note
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Last updated by Duncan Nottage 5th March 1999