The evidence

More agencies. Fewer placements.

Every number on this page comes from the REC, the ONS, APSCo, the Insolvency Service, Gartner, Validity, Google or Yahoo. Each one is linked to the page it was published on, so you can check it rather than take my word for it.

Compiled 10 September 2026 · Sources dated 2023–2026

The pot got smaller. The queue got longer.

Between 2023 and 2025 the number of UK recruitment enterprises rose by roughly 1,700. Over the same period the sector’s output fell and permanent placements collapsed by a third.

UK permanent placements a year

Estimated by the REC. Zero baseline.

Pre-pandemic average: about 1,000,000 placements a year Pre-pandemic ~1,000,000 2023: 806,400 placements 2023 806,400 2024: 536,400 placements — down 33.5% on 2023 2024 536,400
A 33.5% fall in a single year, against a pre-pandemic average of about a million. REC, Recruitment Industry Status Report 2024/25, published 8 December 2025. Sector estimates extrapolated from an online survey of 186 UK recruiters.

What the sector contributes to the UK economy

Gross Value Added. Zero baseline.

2023: £44.4bn 2023 £44.4bn 2024: £40.6bn, 1.6% of UK GVA 2024 £40.6bn
£40.6bn was 1.6% of UK Gross Value Added in 2024. The REC does not publish an equivalent share for 2023. REC, Recruitment Industry Status Report 2024/25.
31,345

UK recruitment enterprises in 2025 — up from 29,635 in 2023, and 31,225 in 2024. More firms competing while the work shrank.

REC, RISR 2024/25 (2025)
120

UK recruitment businesses appointed liquidators in six months to April 2025 — a 17% rise year on year, and the fastest rate since the financial crash.

City AM analysis of Insolvency Service data, May 2025
77.3%

of UK recruitment enterprises are micro businesses with fewer than 10 employees. Most agencies have nobody whose job is winning clients.

REC, RISR 2022/23 (2023)

Roles are harder to come by, and so are the clients with them.

Official vacancy data and the industry’s own sentiment surveys point the same way.

707,000

UK job vacancies, May to July 2026 — 81,000 (10.3%) below the pre-pandemic January to March 2020 level, and down 19,000 on the year.

ONS, Vacancies and jobs in the UK (Aug 2026)
2.5

unemployed people per vacancy, April to June 2026 — up from 2.3 a year earlier. Employers have less reason to pay for help finding people.

ONS, Vacancies and jobs in the UK (Aug 2026)
34

consecutive months of falling demand for staff reported by UK recruitment consultancies, to August 2026 — though permanent placements rose that month for the first time since 2022.

KPMG & REC, UK Report on Jobs (2026)

How recruitment business leaders feel about the UK market

Share of respondents. Zero baseline.

Optimistic Pessimistic
Optimistic: 25% Optimistic 25% Pessimistic: 43% Pessimistic 43%
Improved from 16% optimistic and 50% pessimistic in 2022, but still nearly two pessimists for every optimist. APSCo UK with Saffery, Recruitment Index 2025.

Which is why agencies turn to outbound — and why it goes wrong.

Cold outreach still works. But the inbox got stricter, and buyers got less patient. Both are measurable.

Where B2B marketing email actually lands

Average inbox placement, Office 365 and Google Workspace combined.

Reached the inbox Spam, blocked or missing
Reached the inbox: 83.6% 83.6% Did not reach the inbox: 16.4% 16.4% never arrives — about one in six
Measured on 2024 seed-list data. In the UK specifically, almost one third of email goes to Microsoft-hosted addresses, which Validity describes as the harder environment. Validity, 2025 Email Deliverability Benchmark Report (March 2025). Global figure unless stated.
0.3%

The spam-complaint rate at which Google and Yahoo start rejecting you. Google advises staying below 0.10% and never reaching 0.30%; Yahoo requires under 0.3% plus SPF, DKIM and a valid DMARC policy.

Google sender guidelines · Yahoo sender best practices (2024, current 2026)
73%

of B2B buyers actively avoid suppliers who send irrelevant outreach. Getting delivered is not the same as getting read.

Gartner, survey of 632 B2B buyers, fielded Aug–Sep 2024, published June 2025. Geography not stated — treat as global.
1 in 6

B2B marketing emails never reaches the inbox even when the sender is legitimate. Sending from your live company domain puts that domain’s reputation on the line.

Validity, 2025 Benchmark Report

Every figure on this page

Same data, as a table, with the publisher and a link to the page each number was taken from.

All figures and sources
FigureWhat it measuresSource
31,345UK recruitment enterprises, 2025 (29,635 in 2023; 31,225 in 2024)REC, RISR 2024/25 — press release, 8 Dec 2025
536,400Permanent placements, 2024, down 33.5% from 806,400 in 2023REC, RISR 2024/25 — press release
£40.6bnSector Gross Value Added, 2024 (1.6% of UK GVA), from £44.4bn in 2023REC, RISR 2024/25
77.3%Share of UK recruitment enterprises that are micro businesses (<10 staff), 2023REC, RISR 2022/23
120UK recruitment businesses appointing liquidators in six months to April 2025, up 17%City AM analysis of Insolvency Service data
707,000UK job vacancies, May–Jul 2026; 10.3% below Jan–Mar 2020ONS, Vacancies and jobs in the UK
2.5Unemployed people per vacancy, Apr–Jun 2026 (2.3 a year earlier)ONS, Vacancies and jobs in the UK
34 monthsConsecutive months of falling staff demand to Aug 2026KPMG & REC, UK Report on Jobs
25% / 43%Recruitment leaders optimistic vs pessimistic about the UK market, 2025APSCo UK with Saffery, Recruitment Index 2025
83.6%B2B inbox placement, Office 365 + Google Workspace combined, 2024 dataValidity, 2025 Benchmark Report
0.3%Spam-complaint threshold enforced by Google and YahooGoogle · Yahoo
73%B2B buyers who avoid suppliers sending irrelevant outreach (n=632, fielded Aug–Sep 2024)Gartner, June 2025

Where a figure is global rather than UK-specific, it says so. REC sector estimates are extrapolated from a survey of 186 UK recruiters and are the industry body’s own numbers, not an independent regulator’s. The reading of this data — more agencies chasing less work — is mine, not the publishers’. The REC’s own framing of the same report is more optimistic.

None of this makes the phone ring.

What it does explain is why waiting for clients to come to you stopped working, and why the agencies still growing are the ones doing something deliberate about it. If you want to talk through what that looks like for your desk, fifteen minutes is enough.

Book a 15-minute call