Temporary-Employment Placement Agencies in the UK Industry Market Research Report now updated by IBISWorld

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Temporary or agency work is a bellwether of prevailing economic conditions. Temporary workers are the first to face restructuring pressures during a downturn as companies seek to preserve the jobs of their permanent employees. The industry's performance has suffered significantly since the onset of the financial crisis in late 2007. Over the five years through 2012-13, revenue is expected to fall at an annualised 1.5%. As the economy recovers over the next five years, demand for temporary workers will grow. However, IBISWorld forecasts that industry revenue will continue to decrease marginally over the next five years to 2017-18 partly due to the introduction of the Agency Worker Regulations, which are expected to increase costs for agencies and employers, thus making employers more reluctant to hire temporary staff. For these reasons, industry research firm IBISWorld has updated its report on the Temporary-Employment Placement Agencies industry.

IBISWorld Market Research

IBISWorld Market Research

The industry is well-placed for growth as the economy recovers

Temporary or agency work is a bellwether of prevailing economic conditions. According to IBISWorld industry analyst Craig Shulman, “temporary workers are the first to face restructuring pressures during a downturn as companies seek to preserve the jobs of their permanent employees”. However, temporary workers have the benefit of being the first to be hired during the initial recovery phase, as employers assess the strength and sustainability of the upturn. The Temporary-Employment Placement Agencies industry's performance has suffered significantly since the onset of the financial crisis in late 2007. This resulted in a large fall in demand for temporary workers, and industry revenue and profit followed. In 2012-13, the industry is forecast to generate revenue of £26.7 billion. Over the five years through 2012-13, revenue is expected to fall at an annualised 1.5%.

As the economy recovers over the next five years, demand for temporary workers will grow. IBISWorld forecasts that industry revenue will continue to decrease marginally over the next five years to 2017-18. Shulman adds, “the continued decline will be partly due to the introduction of the Agency Worker Regulations, which are expected to increase costs for agencies and employers, thus making employers more reluctant to hire temporary staff”.
The Temporary-Employment Placement Agencies industry has a low level of market share concentration. The industry is highly fragmented, with most operators being small to medium-sized establishments. Although there are some large global players in the industry, their combined share of industry revenue is small. The only major player in the industry is Adecco.

For more information on the Temporary-Employment Placement Agencies industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.

IBISWorld industry Report Key Topics

This industry includes firms that supply labour to clients' businesses for limited periods to supplement their existing labour force. The individuals supplied remain as employees of the temporary-employment agency. However, direct employees at the clients’ worksite undertake supervision of these workers.
Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalisation & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on many UK industries. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in London, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.co.uk or call (020) 3008 6568.

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Gavin Smith
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