A high in recruitment, despite the number of permanent placements falling by 8%, it seems employers are willing to pay more for the right candidate.
Employers are hiring less but are paying more to find the right people, according to a new report.
The Recruitment and Employment Confederation's Annual Industry Turnover and Key Volumes Survey 2007/ 08 shows turnover in the UK's recruitment industry hit a record high of more than £27bn between April 2007 and March 2008. The growth has been achieved through a sharp increase in turnover from permanent placements rising 21.7 per cent from £3.514bn to £4.276bn.
This high has appeared despite the number of permanent placements falling from 787,280 to 726,863 which the REC believes is down to employers willing to pay more for the right candidate.
REC chief executive Kevin Green said: "The huge growth in permanent recruitment turnover shows that employers are willing to pay more for the right candidate."
"This remains the case even in the changing employment climate. The downturn is really putting the skills of professional recruiters to the test but at the same time, this is giving them a real opportunity to shine and show employers what they're really made of."
He added: "As we enter a significant economic downturn, it is vital that the recruitment industry retains its ability to help the economy bounce back from the bottom of the cycle which will in turn enable early recovery."
"Within this context, we must ensure that new legislation such as the EU Agency Workers Directive and the taxation of recruitment services are implemented and reviewed in a way that does not add further barriers."
"The recruitment industry plays a crucial role in the economic success of the UK by ensuring the efficient delivery of human resources where they are most needed - in both good times and bad."
"Currently, some niche players are faring particularly well, for example those providing risk management specialists to the financial sector, while good opportunities for consolidation are emerging in most occupational sectors. The year ahead is likely to test companies, with flexibility and control of cash the key factors in achieving success."
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