Is 2017 the perfect time to set up your recruitment agency?

Well, as the UK economic performance is considered as one of the world’s best, there may not be a better time. 2017 is predicted to be a goldmine for recruitment agencies, with record turnover figures, massive hiring projections, increasing placements numbers and better margins. If you have been toying with the idea of setting up your own recruitment business, then now is the perfect time. See below for five factors which will make your decision to take the next step even easier.

1: The market is more flexible than ever before

Employees are more willing to trade up in the jobs market, change career and work for different companies. That is even more the case for the younger generations who are quicker to look for new opportunities. 52% of the young Brits were indeed seeking a career change last year, according to a survey ran by Indeed. Furthermore, people in general are getting more confident in the state of the UK domestic economy, which means they are more willing to take risks and apply for new jobs. UK job boards have witnessed a 31% year-on-year increase in applications. The reason being that one of the most popular new year’s resolution this year is to look for a new job and the vast majority (84.4%) of employees are looking for a new role in 2017.

2: Startups are thriving

With a growing economy and a rise of entrepreneurs over the age of 50, the appetite for starting a new businesses has grown massively and the UK startup scene is thriving. According to StartUp Britain, 342,927 new companies have been founded in the UK between January and June 2016 alone and entrepreneurs are setting up new businesses at a record pace of 80 an hour. Consequently, we witness the creation of thousands of jobs at a fast rate. Additionally, the UK startup survival rate is also at its highest.

3: Record employment levels

A booming job market has led to UK unemployment dropping (4.8%) to its lowest rate in 11 years. A record 31.76 million people are currently working and the wages are increasing. Whilst record levels of employment exacerbate skills shortages, the UK is continuing to produce a record number of jobs.

4: Cost of entry has never been lower

The route to market has never been simpler and setting up a limited company can be done for the grand total of £15. Additionally, the minimum capital requirement is 1p. You can do this directly through Companies House. Alternatively, you can save time and have a company such as GoLimited do it all for you for more or less the same price. In terms of CRMs, prices have gone down these past few years as well. Companies like Recruitment Worx offer easy-to-set-up and easy-to-use software for recruiters for only £30 a month.

5: Specialist markets thrive alongside major sectors

Continued reports of skills shortages in certain sectors will ensure that 2017’s hiring will be performed at a quicker pace than before as client’s cannot afford to take their time in a candidate driven market. With an abundance of opportunities, the market is blossoming for specialist recruitment companies to carve a niche. Emerging sectors are contributing to the growth of their parent industry and specialised recruiters are thriving in niche sectors.

For example, Fintechs (financial technology companies) are contributing to both the banking and the IT sectors, massively creating jobs across the UK over the last few years (the n.1 UK Fintech, Funding Circle, has announced that “Over the next 12 months, lending through the Funding Circle platform will create a further 50,000 new jobs, supporting economic growth in the UK, US and continental Europe.”). Today, the Fintech sector is worth £20bn. Another example is Cloud, which has redefined the IT departments of every company and organisation throughout the world and is expected to create 1.6 million more jobs in Europe by 2020. Each emerging sector creates demand for specialists and takes talent from existing companies to startups. Therefore, these sectors creates further employment demand and offers great opportunities for recruitment businesses to play a pivotal role in the growth this year.

Thinking about setting up your own recruitment business? Make sure you’re not overlooking anything and download our Guide to Setting up a Recruitment Agency below.