Recruitment sector “thriving” with 2,926 agencies launched in 2016 (so far)

Those looking to start a business may want to consider launching a recruitment venture, according to research from Sonovate which claims the UK’s recruitment sector is “thriving”.

Using data from Companies House, Sonovate reports that 2,926 new recruitment agencies launched in the first half of 2016 – a 10% increase on the number of recruitment businesses created in the same period in 2015.

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Looking at the figures in more detail, the number of recruitment start-ups increased by 10% and 7% respectively during the first and second quarter of 2016 compared to the same periods last year.

Sonovate has suggested that the recent success of the recruitment sector, which has grown by 144% on 2010, is partly due to the rate rise in UK employment and the fact that vacancies in core sectors are growing year-on-year.

It also claims that an increase in contract recruitment is responsible for the growth of the industry. Apparently 90% of the turnover generated by recruitment agencies in 2015 came from contract or temporary business.

Richard Prime, co-founder of Sonovate, said:

“The UK recruitment sector is thriving, and the industry’s rapid growth is showing no sign of slowing. This is good news for the economy, especially during the current climate of uncertainty following the Brexit vote.

“As wage growth continues upwards, and the war for talent intensifies, skilled recruitment professionals are able to use their industry experience and networks to source the best talent.”

For advice on starting your own recruitment business, read our free start-up guide here.