8,456 new recruitment agencies launched in 2019 according to leading recruitment finance and back-office tech provider, Sonovate.
The data, extracted from Companies House, reveals a 230% increase in the number of recruitment companies launched in 2010, when 2,556 were created.
The highest number of agencies registered in 2019 were based in Greater London and the south east, followed by Birmingham, Leicester and Manchester.
Commenting on the data, Sonovate co-CEO, Richard Prime, said:
“It’s great to see the recruitment industry in such good health despite the uncertainty surrounding Brexit that has dominated the last year.
“The UK is a nation of entrepreneurs and small, nimble recruitment specialists have come to dominate the market due to lower start-up costs, better access to finance and a more connected world.
“At Sonovate, we are committed to providing flexible finance and the associated back office technology to recruitment companies of all sizes, from start-ups to enterprise size, to fuel their growth.”
Additional research from Sonovate, based on a sample of 500 respondents, also reveals that healthcare, IT and education were deemed the most in demand sectors among those looking to launch their own recruitment business in the last year.
“It’s no surprise to see more agencies emerging in the healthcare and IT spaces in particular, given the increasing skills shortages we are facing in such sectors here in the UK.
“Recruitment businesses are perfectly placed to help businesses overcome these hiring challenges and Sonovate is committed to helping them do just that.”