Record-breaking UK jobs market shows recruitment sector strength
Once again the UK jobs market has delivered another set of record breaking figures, showing just why so many recruiters are planning for significant growth in 2019.
The figures are yet another boost to the recruitment sector. They show that 32.6 million people were in work between October and December 2018, with an employment rate of 75.4% – the highest since 1971. The unemployment rate was just 4% – the lowest since 1975.
And wage growth sat at 3.4% in the year to December, which is a significant boost to worker pay packets and spending power, especially as inflation has slowed to its lowest rate in two years.
A clear shortage of candidates in certain sectors to meet demand means workers are on the move to secure increased pay. While the tight labour market is a challenge for employers, there is an opportunity for innovative, creative new businesses to thrive by helping clients meet those challenges head-on.
Paul Mizen, managing director of The Recruit Venture Group, which has so far helped 55 recruitment professionals launch their own businesses, said:
No one will have failed to notice some of the doom-mongering around the UK economy, but my position has always been clear – there has never been a better time to launch a recruitment business.
“These figures are a good example why. We have to look at what’s going on in the real jobs market and the reality is that things are extremely robust and positive.
“The idea that people might be holding back launching their own enterprises because of Brexit or uncertainty is wrong, and these figures show that potential entrepreneurs are missing out by delaying a decision.
“There is huge competition for skills right now, and a recruiter who knows their market, or has a sound strategy up their sleeve, has the potential to build a very profitable, thriving business, very quickly.
“These are not just words. We are ready to invest right now in recruiters with at least a few years’ experience of the business and a good track record. The opportunities just now are clear.”
Sentiment among recruiters is also positive. A survey late last year by experts Bibby Financial Services of 250 recruitment businesses showed nearly two thirds expected significant growth this year, while 73% were planning to invest in their business in 2019.
For those recruiters who have always thought about running their own business, the message from the The Recruit Venture Group is to not let short term turbulence distract from long term ambitions.
The Recruit Venture Group’s unique joint venture model also takes away many of the anxieties entrepreneurs face when launching a business solo.
They offer 100% of the finance needed for launch, risk free, and even offer a healthy salary to those they invest in to ensure that the monthly bills and mortgage can be paid without worry.
Secondly, they offer all of the back office support the business needs. It is a tailored, first-class solution which covers HR, payroll, accounts, IT, marketing and more. All of these functions, if contracted in independently, would amount to thousands of pounds of overhead per month, draining cashflow.
And lastly, there is all the mentoring support and advice the new entrepreneur needs. The Recruit Venture Group team collectively has decades of experience in recruitment, across different sized businesses and different sectors.
The package is geared to the business succeeding by taking care of the things new enterprises often struggle with. That means recruiters are free to do what they do best – recruit.
This is their business, their brand above the door, their strategy and vision, and ultimately their own legacy they are creating.
From initial enquiry to the first day of launch can be as swift as a few months. That means recruiters looking to take advantage of the current buoyant labour market, can do so very quickly.