February 11 ,2016 | by Claire Payne

Over 5,000 recruitment start-ups launched in UK last year, research shows

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Over 5,000 recruitment start-ups launched in the UK last year, according to research from Sonovate. 

This data comes after the Recruitment and Employment Confederation (REC) found that turnover in the recruitment industry increased by 9.7 per cent to £31.5 billion in 2015.

Robust

The company, which provides contract finance for small recruitment agencies, found that there has been a 144 per cent increase on the 2,092 recruitment agencies launched in 2010.

The increase in the number of entrepreneurs starting their own recruitment business has led to the UK becoming the third biggest recruitment market globally, after the US and Japan.

Sonovate founder and chief executive Richard Prime said that the UK recruitment sector is growing “faster than ever before”, and that this research is the latest indication of the “robust health” of the recruitment industry.

Changing

Prime went on to comment on the shortage of skills, stating that the way people work is changing.

“With the well-documented skills shortage more and more skilled workers now view contract work as both an attractive and lucrative form of employment,” he said.

He added that this provides a “huge opportunity” for recruitment companies, but added that they need the right finance in order to achieve success.

Claire Payne

Claire Payne is a journalism graduate and News Writer for LSBF. She writes about SMEs, education and careers, entrepreneurship, women in business, and sustainability.

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