THE VIEW AND THE INTELLIGENCE
Findings from the first REC EDI Summit p2 BI G TALKI NG POI NT
The winners of the REC Awards p4 Issue 107 Recruitment JANUARY҃ Ma ers FEBRUARY 2024
LEGAL U PDATE
New rules on WTR and TUPE p6 Q& A
Experiences of change and conঞnuity p7
RISR Report
Resilient recruitment sector optimistic about future growth T
he recruitment industry is outperforming the UK economy, but 2024 is likely to be a challenging year, according to the REC’s latest Recruitment Industry Status Report. Researchers found that the sector grew by 13.7% in 2022 (5.9% when adjusted for inflaঞon), compared with UK naঞonal GDP growth of 4.3% in the same period. The report predicts a return to more rapid growth in 2025, poinঞng to the fact that the sector’s nominal output is 5.7% higher than before the pandemic as evidence of its resilience. Much of the recruitment sector’s growth in 2022 was driven by business recovery a[er the pandemic. Its direct contribuঞon to the UK economy is esঞmated at £41.3bn in 2022. Temporary and contract placements accounted for 82% of acঞvity in 2022 (£33.9bn). This conঞnues a trend seen in last year’s report and the researchers predict that demand will remain higher for temporary than for permanent posiঞons while employers lack the
@RECPress RM_January February 2024 final-NEW-VT.indd 1
confidence to commit to long-term hiring plans. Candidates are also being cauঞous about moving jobs for fear of losing security. This is slowing the growth in demand from clients (from 14% growth in 2021 to 3% in 2022). Economic pressures, plus a fall in demand a[er the post-pandemic ‘sugar rush’ means that the sector’s growth is
Making great work happen
likely to be significantly lower in 2023. The researchers predict that its gross value added (GVA) will have fallen by 1.1% in real terms. Looking ahead, 2024 is expected to be a tough year. A slower economy across the UK, plus a potenঞal rise in unemployment, is likely to lead to a Story conঞnued on page 8
www.rec.uk.com 02/01/2024 09:13