Record number of recruitment agencies launched in 2014

Nick Elvin

More recruitment agencies were launched last year than at any other point since 1990, according to figures obtained by contract finance provider Sonovate.

According to the data, taken from Companies House statistics, 4,083 new agencies were launched in the UK in 2014, an increase of 7% compared to the previous year. This is almost double the 2,092 founded in 2010, and more than treble the 1,303 launched in 2007, before the recession.

The figures go back as far as 1990, when just 88 new agencies launched. According to Sonovate, an increase in contract recruitment is among the factors that have led to the significant growth experienced over the past 25 years. In addition, technological advances such as the rise of email, online job boards, mobile recruiting and social media have also heavily influenced the industry.

The news coincides with research from the Recruitment and Employment Confederation (REC) which shows the value of the UK’s recruitment industry has surpassed its pre-recession peak, recording a total revenue of £28.7 billion at the end of the financial year 2013/14.