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Temporary Employment Placement Agencies in the UK - Market Size, Industry Analysis, Trends and Forecasts (2024-2028)

IBISWorld IBISWorld London, United Kingdom Last Updated: July 2024 SIC UK-N782

Revenue

£236.5bn

2024-25

£249.7bn

Past 5-Year Growth

Profit

£XX.Xbn

Employees

5m

Businesses

53,113

Wages

£XXX.Xbn

Temporary Employment Placement Agencies in the UK industry analysis

Revenue in the Temporary Employment Agency industry is anticipated to drop at a compound annual rate of 4% in the five years through 2024 to €236.5 billion. The COVID-19 outbreak meant key employers of temporary workers in the hospitality and tourist sector shut their doors, and companies froze hiring due to economic uncertainty - a sizeable blow to revenue in the three years through 2022. Workers on temporary contracts represented a significant chuck of employment losses in all quarters of 2020. According to Eurostat data, temporary employment declined across Europe in the four years from 2017 to 2020, dipping from 13.8% to 11.9%.

Trends and Insights

  • Companies have relied on temporary employees during economic uncertainty. Companies are continuing to struggle to fill vacancies that remain above pre-pandemic levels, so are turning to agencies to help fill the gap.
  • Elementary and operative jobs make the most use of temporary workers. Temporary positions are often favoured in the cleaning profession and for transport operators, technical labourers and machine operators.
  • The industry is fragmented, with numerous placement agencies and niche recruiters targeting specific sectors and focusing on one particular country or region. Regulations often have prevented larger agencies from saturating more of the market in certain sectors.
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Top Questions Answered in this Report

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What is the market size of the Temporary Employment Placement Agencies industry in the United Kingdom in 2025?

The market size of the Temporary Employment Placement Agencies industry in the United Kingdom is £236.5bn in 2025.

How many businesses are there in the Temporary Employment Placement Agencies industry in the United Kingdom in 2024?

There are 53,113 businesses in the Temporary Employment Placement Agencies industry in the United Kingdom, which has grown at a CAGR of 5.0 % between 2019 and 2024.

Has the Temporary Employment Placement Agencies industry in the United Kingdom grown or declined over the past 5 years?

The market size of the Temporary Employment Placement Agencies industry in the United Kingdom has been declining at a CAGR of 1.0 % between 2019 and 2024.

What is the forecast growth of the Temporary Employment Placement Agencies industry in the United Kingdom over the next 5 years?

Over the next five years, the Temporary Employment Placement Agencies industry in the United Kingdom is expected to grow.

What does the Temporary Employment Placement Agencies industry in the United Kingdom include?

Fixed-term temporary workers and Casual workers are part of the Temporary Employment Placement Agencies industry in the United Kingdom.

How competitive is the Temporary Employment Placement Agencies industry in the United Kingdom?

The level of competition is high and increasing in the Temporary Employment Placement Agencies industry in the United Kingdom.

Everything you need in one report

  • Reliable market estimates from 2014-2029
  • Competitive analysis, industry segmentation, financial benchmarks
  • Powerful SWOT, Porter’s Five Forces and risk management frameworks
  • Online membership platform with PDF, Word, Excel and PPT exports

Table of Contents

External Environment

Highlights

Trends
  • Regulation & Policy
  • Assistance

Key Takeaways

Agencies must ensure the welfare of temporary workers. The 2008 Directive on Temporary Agency Work ensures that agencies must protect the working conditions of temporary workers in the EU specifically and agencies have to ensure they are paid fairly, given adequate holiday and sick leave.

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External Drivers

Analysis

What demographic and macroeconomic factors impact the Temporary Employment Placement Agencies in the UK industry?

Financial Benchmarks

Highlights

Trends
  • Profit Margin
  • Average Wage
  • Largest Cost

Key Takeaways

Profit fluctuates depending on an agency's size, sector and region focus. The salaries of the job that temporary workers are placed for greatly impacts the profit margin of each candidate.

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Cost Structure

Charts
  • Share of Economy vs. Investment Matrix
  • Industry Cost Structure Benchmarks:
    • Marketing
    • Depreciation
    • Profit
    • Purchases
    • Wages
    • Rent
    • Utilities
    • Other
Analysis

What trends impact cost in the Temporary Employment Placement Agencies in the UK industry?


Key Ratios

Data tables
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)
  • Revenue per Employee (2014-2029)
  • Wages/Revenue (2014-2029)
  • Employees per Establishment (2014-2029)
  • Average Wage (2014-2029)

Country Benchmarks

European Leaders & Laggards

Data Tables

Top and bottom five countries listed for each:

  • Revenue Growth (2024)
  • Business Growth (2024)
  • Job Growth (2024)

European Country Performance

Data Tables

Rankings available for 37 countries. Statistics ranked include:

  • IVA/Revenue (2024)
  • Imports/Demand (2024)
  • Exports/Revenue (2024)
  • Revenue per Employee (2024)
  • Wages/Revenue (2024)
  • Employees per Establishment (2024)
  • Average Wage (2024)

Structural Comparison

Data Tables

Trends in 37 countries benchmarked against trends in Europe

  • Concentration
  • Competition
  • Barriers to Entry
  • Buyer Power
  • Supplier Power
  • Volatility
  • Capital Intensity
  • Innovation
  • Life Cycle

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Methodology

Where does IBISWorld source its data?

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