Blog What does the shrinking of the UK workforce mean for Recruitment Agencies? - Plimsoll Publishing UK

As the number of people in employment in the UK sees its biggest decline in four years and wage growth stalls once again, the expected impact on the UK Recruitment industry should look to be troublesome. With the workforce having shrunk, and the UK recruitment industry being dependent on it, the going is likely to get tough in the industry. Or is it?

There was a net reduction of 58,000 people in work in the last quarter - the sharpest decline in employment since 2015. This was however smaller than the predicted employment slump for the quarter, which was said to be 102,000.

However, despite the reduction of people in work, the number of people that are unemployed also declined by 23,000. Of course, this means there is a NET reduction of our workforce by approximately 35,000 but the higher figure of 58,000 will include retirees and emigrant figures. This demonstrates a degree of uncertainty for the UK jobs market and recruitment companies.

With this in mind, Plimsoll, the UK’s leading market and company analysts, have produced a special study on the UK’s 2200 leading Recruitment Agencies highlighting which companies are already in financial difficulty and least able to keep trading while they wait for the market to stabilise.

The new Plimsoll Analysis assesses each of the UK’s 2200 leading Recruitment Agencies looking at their short- and long-term financial health, overall trend in performance, future durability and potential for acquisition. Based on the latest financial data for each company, this new analysis shows:

• 574 of the 2200 companies are already rated as Caution or Danger – the former suggests growing issues whereas the latter indicates immediate improvements are required

• 328 of the companies included are ripe for takeover – these companies are independently owned and with a large difference between current and future value. If the market is to consolidate in the short-term, Plimsoll considers these the most attractive targets

• 254 companies have lost more than a quarter of their value – As profit margins are increasingly under pressure, valuations have fallen again in the latest period

The Plimsoll Analysis provides an easy means of highlighting those companies ill prepared to ride out the current storm, those well placed to make a strategic acquisition or two and the players powering ahead in spite of it all.

Order the November edition of the Plimsoll Analysis today and you will receive:

• PDF of the November Plimsoll Analysis (delivered within 3 hours)
• A Paper Copy (to be printed, bound and sent to you via overnight courier)
• Updated copies of the PDF report (sent via email) as soon as they are published
• Individual analysis of the UK’s 2200 largest Recruitment Agencies
• 6 months access to the online and interactive version of the Plimsoll Analysis (TALAT)