- 21 Aug
Is It A Good Time To Enter The Recruitment Business?
Is it a good time to enter the recruitment business? We can't make the decision for you but here are a few facts and figures that might help you in making your decision about starting a temporary staff agency.
OK, so the level of economic growth predicted for the UK has just been slightly adjusted down, however the economy is still predicted to grow - which means more production, hence more businesses and hence more requirement for staff.
A quick search of the number of new businesses formed in the UK shows that in July 2016 50,104 came into existence, versus 50,473 in July 2017. A slight increase of 0.74% in the total number of new businesses registered, which much be a positive sign that the economy is moving ahead. New startups equals a requirement for staff and temporary labour will fulfill a part of that requirement.
Much of the thinking behind the negativity about the UK economy is uncertainty about the effects and shape of Brexit. However, no one really knows what is going to happen or what shape the exit is going to take. Therefore, it's all speculation at present. There are more positive accounts around to balance the "harbingers of doom", I recently read one report suggesting the the "hard Brexit", that everyone is dreading, might produce an economic boost for the UK economy.
What Are Other Recruiters Doing?
Another factor might be to look at what other recruitment companies are doing. Again I did a quick search to see the numbers of temporary staff agencies registered. Between January 2016 and July 2016 there were 735 new temporary staff hire businesses registered in the UK. The same figure for 2017 is 988, an increase of 253 which equates to an increase of 34.4%. So there are clearly others entering the sector.
Just looking at the number registered in July 2017, the number was 2.2 times higher than the number registered in July 2016, so its not like all the growth took place earlier in the year.
The sector that you intend to specialise in could be another significant factor. Back on the 22nd March 2017 The Telegraph reported that digital technology jobs across the UK had grown at more than twice the rate of non-digital technical sector jobs. Recruitment Buzz (02/02/17) tipped IT & Technology to be the fastest growing recruitment niche in 2017, followed (in order) by engineering, construction, oil - gas - energy, and then accounting and finance.
Enter The Recruitment Business?
We can't make the decision about entering the recruitment business for you, but we can help you make the process of starting your business as simple as possible, by giving you access to: