Permanent recruitment fees fall 8 per cent

Permanent
recruitment fees in the recruitment industry fell by 8 per cent last year, a
sector-wide survey reveals.

The
study by the Recruitment & Employment Confederation (REC) also shows that
margins in the temporary recruitment market fell 0.7 per cent.

Tim
Nicholson, chief executive of the REC, said that although the survey shows
total recruitment industry sales grew by 5.9 per cent and the temporary
recruitment industry also expanded by 7.1 per cent, overall the year had been a
difficult one for the industry.

"The
survey demonstrates that the recruitment industry continues to be of huge value
to the UK economy both in the services it provides and the revenue it
generates. It is also clear that this has been a tough year for our
industry," he said.

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"Further
margin squeezing as well as additional regulatory costs contained within the
Government’s legislative pipeline may affect our ability to find job
opportunities for work-seekers on the extremely large scale achieved in
2001-02."

By Ben Willmott