This Market Report examines the UK market for permanent recruitment, which includes firms engaged in general and executive permanent appointments. The market is segmented into the following recruitment sectors: blue collar, computing/IT, construction, drivers, educational, financial/accountancy, hotel/catering, nursing/medical, professional/managerial, secretarial/clerical and technical/engineering.

In the year ending March 2006, the market was valued at £3.28bn by the Recruitment & Employment Confederation (REC), which also put the number of appointments for the year at 706,080. The market increased in value by just 2.2% on the previous 12 months. However, 2006 as a whole has continued to be a good year for this market, with growth proceeding at a steady pace.

Secretarial/clerical and computing/IT are the largest sectors, and represent nearly half of all appointments made. Following a drop in share in the previous year, the computing/IT sector became significant again in the year to March 2006.

The major firms include: Adecco Holdings (UK) Ltd, Alexander Mann Group Ltd, Brook Street (UK) Ltd, Carlisle Group PLC, Matchtech Group PLC, Michael Page International PLC, Morson Group PLC, Pertemps Recruitment Partnership Ltd, Robert Walters PLC, Rullion Ltd and SThree PLC. Most of the industry is UK owned.

The two main issues for the market are currently candidate supply and profit margins. Staff turnover in the industry remains high and there is anxiety about the high number of new entrants. Faced with these pressures, many firms merged in 2006, hoping for better financial returns. However, it is not only financial pressures that have been of concern. The threat of data theft is increasing in line with the spread of computer access.

The publisher forecasts that the market will increase in value by 2.1% in the year ending March 2007, after which steady year-on-year growth of between 2.1% and 2.8% will bring the total value of the market to £3.7bn by March 2011. Given the immense activity in the market in 2006 and the continued demand for permanent staff predicted for 2007, these figures might seem modest. However, competition is severe and fee rates remain under pressure, so the value of assignments is unlikely to accelerate considerably in the near future.

Executive Summary
1. Market Definition
INTRODUCTION
MARKET SECTORS
MARKET TRENDS
A Strong Market
Skills Shortages Continue
High Staff Turnover Concerns Clients
The Influence of the Internet
The Rise of E-Auctions
Recruitment Staff Shortages
ECONOMIC TRENDS
Population
Table 1: UK Resident Population Estimates by Sex (000), Mid-Years 2001-2005
Gross Domestic Product
Table 2: UK Gross Domestic Product at Current and Annual Prices (£m), 2001-2005
Inflation
Table 3: UK Rate of Inflation (%), 2001-2005
Unemployment
Table 4: Actual Number of Unemployed Persons in the UK (million), 2001-2005
MARKET POSITION
Table 5: The Permanent Staff Recruitment Market's Share of the Overall Recruitment Market by Turnover (£bn and %), Years Ending March 2002-2006

2. Market Size
THE TOTAL MARKET
By Value
Table 6: The Total UK Permanent Staff Recruitment Market by Turnover (£bn), Years Ending March 2002-2006
Figure 1: The Total UK Permanent Staff Recruitment Market by Turnover (£bn), Years Ending March 2002-2006
By Volume
Table 7: Number of Permanent Staff Placements, Years Ending March 2002-2006
Figure 2: Number of Permanent Staff Placements (000), Years Ending March 2002-2006
MARKET SECTORS
Blue Collar
Computing/IT
Construction
Drivers
Educational
Financial/Accountancy
Hotel/Catering
Nursing/Medical
Professional/Managerial
Secretarial/Clerical
Technical/Engineering
Recruitment to Recruitment Consultancies

3. Industry Background
RECENT HISTORY
INDUSTRY SYNOPSIS
Table 8: Financial Analysis of Recruitment Companies (£000, % and £), Latest Financial Years
NUMBER OF COMPANIES
Table 9: Number of UK VAT-Based Enterprises Engaged in Labour Recruitment and the Provision of Personnel by Turnover Sizeband, 2003-2006
EMPLOYMENT
Table 10: Number of UK VAT-Based Enterprises Engaged in Labour Recruitment and the Provision of Personnel by Employment Sizeband, 2003-2006
REGIONAL VARIATIONS IN THE MARKETPLACE
HOW ROBUST IS THE MARKET?
LEGISLATION
KEY TRADE ASSOCIATIONS
Recruitment & Employment Confederation
Association of Technology Staffing Companies
Association of Executive Search Consultants

4. Competitor Analysis
THE MARKETPLACE
General Permanent Recruitment
Executive Recruitment
MARKET LEADERS
Table 11: Selected Leading UK Companies in the Permanent Recruitment Market by Total Turnover† (£m), 2005
Adecco Holdings (UK) Ltd
Company Structure
Current and Future Developments
Financial Results
Alexander Mann Group Ltd
Company Structure
Current and Future Developments
Financial Results
Brook Street (UK) Ltd
Company Structure
Current and Future Developments
Financial Results
Carlisle Group PLC
Company structure
Current and Future Developments
Financial Results
Hudson Global Resources Ltd
Company Structure
Current and Future Developments
Financial Results
Matchtech Group PLC
Company Structure
Current and Future Developments
Financial Results
Michael Page International PLC
Company Structure
Current and Future Developments
Financial Results
Morson Group PLC
Company Structure
Current and Future Developments
Financial Results
Pertemps Recruitment Partnership Ltd
Company Structure
Current and Future Developments
Financial Results
Robert Walters PLC
Company Structure
Current and Future Developments
Financial Results
Rullion Ltd
Company Structure
Current and Recent Developments
Financial Results
SThree PLC
Company Structure
Current and Future Developments
Financial Results
MARKETING ACTIVITY

5. Strengths, Weaknesses, Opportunities and Threats
STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS

6. Buying Behaviour
BUYERS' REQUIREMENTS
Recruitment Needs
Choosing an Agency
Executive Search
THE ROLE OF RECRUITMENT/SEARCH FIRMS IN THE RECRUITMENT PROCESS

7. Current Issues
MARKET CONDITIONS
EXECUTIVE SEARCH
CORPORATE ACTIVITY
RECRUITMENT AND RETENTION TRENDS
DATA THEFT

8. The Global Market
MARKET SIZE AND LARGEST MARKETS
Table 12: The World's Five Largest Recruitment Markets ($bn), 2004-2006
TOP GLOBAL COMPANIES
Table 13: The Top Three Executive-Search Firms Worldwide by Revenue ($m), 2006

9. Forecasts
INTRODUCTION
Economic Background
Table 14: UK Government Forecasts for Population, Gross Domestic Product, Inflation and Unemployment (000, % and million), 2006-2010
FORECASTS 2007 To 2011
Table 15: The Forecast UK Permanent Staff Recruitment Market by Turnover (£bn), Years Ending March 2007-2011
Figure 3: The Forecast UK Permanent Staff Recruitment Market by Turnover (£bn), Years Ending March 2007-2011
MARKET GROWTH
Figure 4: Growth in the UK Permanent Staff Recruitment Market by Turnover (£bn), Years Ending March 2002-2011
FUTURE TRENDS

10. Company Profiles
Adecco Holdings (UK) Ltd
Alexander Mann Group Ltd
Brook Street (uk) Ltd
Carlisle Group Plc
Hudson Global Resources Ltd
Matchtech Group PLC
Michael Page International Plc
Robert Walters Plc
Sthree Plc

11. Consumer Confidence
METHODOLOGY
KEY FINDINGS THIS QUARTER
THE WILLINGNESS TO BORROW
Confidence Slips Slightly
Table A: The Average Amount Consumers Are Willing to Borrow in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), November 2005-2006
Significantly More Adults Are Willing to Borrow
Table B: The Number of Adults Willing to Borrow in Order to Purchase Expensive Items (000 and %), November 2005-2006
SPENDING FROM SAVINGS
Little Change in Spending from Savings
Table C: The Average Amount Consumers Are Willing to Spend from Savings in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), November 2005-2006
Saving Grows in Relative Importance
Table D: The Average Amounts Adults Are Confident Spending to Purchase Expensive Items (£ and %), November 2005-2006

12. Further Sources
Associations
Publications
Government Publications
Other Sources
Bisnode Sources