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Agencies acting as "shock absorbers" in uncertain jobs market  

New research shows that recruitment agencies seem to be weathering the uncertainty caused by the "credit crisis" without any real problems.

The study from the Recruitment & Employment Confederation's Research Unit has shown agencies are beginning to pick up most of the strain generated by the current uncertainty within the jobs market.

The Key Recruitment Trends 2007 report, which contains the key findings of last year's monthly tracking research, identified the fact that agencies were acting as "shock absorbers" in providing the labour market with flexibility during the present economic period.

Key trends identified in the 2007 review include:


  • Employers continuing to use the same average number of agencies (2.5) as in 2006 although usage increased slightly towards the year's end

  • Employers were less likely to "always use" an agency than they were in 2006, which was the case across most sectors and regions, especially among SMEs. Again there were signs of this trend reversing towards the end of the year

  • During 2007, employers across most sectors increased the use of temporary agency workers as a proportion of their overall workforce

  • Employers in most sectors were significantly more satisfied with their main agency in 2007 – a 20 point increase - compared to the previous year

  • The number of workers registered with agencies increased over the period while the number on assignment per branch remained broadly static

  • The number of workers registered with an agency varied considerably by sector and region

  • Agency workers generally found it easier to find work except in London

  • The average length of individual assignments reduced over the period

  • Agency workers' satisfaction increased across all sectors and regions

  • The proportion of agency workers who were looking for permanent roles continued to decline throughout 2007 to less than 50% by the end of the year.

The complete survey will be published by REC later this month.


Published on Apr 3, 2008


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