UK recruitment sector statistics 2026
The UK recruitment sector's gross value added was £40.6 billion in 2024, and about 872,000 temporary and contract workers were on assignment on any given day. 42% of recruiters surveyed said cash flow pressure held back their growth over the past 12 months. These figures are from the Recruitment and Employment Confederation (REC), published in December 2025. Below them are invoice finance and late payment figures, which cover all sectors.
The recruitment sector
Gross value added (GVA) of the UK recruitment sector in 2024, down from £44.4bn in 2023. Source: REC, Recruitment Industry Status Report, December 2025
Temporary and contract workers on assignment on any given day in 2024 (estimate), down 17.6% on 2023. Source: REC, Recruitment Industry Status Report, December 2025
Permanent placements made in 2024, down 33.5% from 806,400 in 2023. Source: REC, Recruitment Industry Status Report, December 2025
Recruiters surveyed who said cash flow pressure held back their growth over the past 12 months. Source: REC, Recruitment Industry Status Report, December 2025
Recruiters surveyed who said cash flow pressure affects their ability to invest. Source: REC, Recruitment Industry Status Report, December 2025
UK recruitment enterprises in 2025 (31,225 in 2024, 29,635 in 2023). Source: REC, Recruitment Industry Status Report, December 2025
People employed in the UK recruitment industry in 2024, down from 243,118 in 2023. Source: REC, Recruitment Industry Status Report, December 2025
The fall in temps on assignment means less billing to fund, but an agency still pays its temps every week, whether or not the client has paid. The law says it must (regulation 12).
If you run an agency and want to compare the providers that fund temp payroll, see the best invoice finance for recruitment agencies.
Invoice finance, late payment and rates (all sectors)
Invoice finance and asset-based lending that UK Finance members provide to UK businesses at any one time. All sectors, not recruitment only. Source: UK Finance
Turnover of the businesses using UK Finance members' invoice finance and asset-based lending in 2024. All sectors. Source: UK Finance
Owed on average to each UK business affected by late payment. All sectors. Source: Small Business Commissioner research, July 2025
Owed to UK businesses in late payments at any one time (estimate). All sectors. Source: Small Business Commissioner research, July 2025
Bank of England base rate, in force since 18 December 2025. Invoice finance discount charges are usually priced as a margin above it. Source: Bank of England
| Figure | Value | Source |
|---|---|---|
| Gross value added (GVA) of the UK recruitment sector in 2024, down from £44.4bn in 2023. | £40.6bn | REC, Recruitment Industry Status Report, December 2025 |
| Temporary and contract workers on assignment on any given day in 2024 (estimate), down 17.6% on 2023. | 872,000 | REC, Recruitment Industry Status Report, December 2025 |
| Permanent placements made in 2024, down 33.5% from 806,400 in 2023. | 536,400 | REC, Recruitment Industry Status Report, December 2025 |
| Recruiters surveyed who said cash flow pressure held back their growth over the past 12 months. | 42% | REC, Recruitment Industry Status Report, December 2025 |
| Recruiters surveyed who said cash flow pressure affects their ability to invest. | 61% | REC, Recruitment Industry Status Report, December 2025 |
| UK recruitment enterprises in 2025 (31,225 in 2024, 29,635 in 2023). | 31,345 | REC, Recruitment Industry Status Report, December 2025 |
| People employed in the UK recruitment industry in 2024, down from 243,118 in 2023. | 236,470 | REC, Recruitment Industry Status Report, December 2025 |
| Invoice finance and asset-based lending that UK Finance members provide to UK businesses at any one time. All sectors, not recruitment only. | Over £20bn | UK Finance |
| Turnover of the businesses using UK Finance members' invoice finance and asset-based lending in 2024. All sectors. | Over £315bn | UK Finance |
| Owed on average to each UK business affected by late payment. All sectors. | £17,000 | Small Business Commissioner research, July 2025 |
| Owed to UK businesses in late payments at any one time (estimate). All sectors. | £26bn | Small Business Commissioner research, July 2025 |
| Bank of England base rate, in force since 18 December 2025. Invoice finance discount charges are usually priced as a margin above it. | 3.75% | Bank of England |
Source: Recruitment and Employment Confederation (December 2025), UK Finance, Small Business Commissioner (July 2025), Bank of England
View as plain-text Markdown
### UK recruitment sector statistics 2026: key figures | Figure | Value | Source | | --- | --- | --- | | Gross value added (GVA) of the UK recruitment sector in 2024, down from £44.4bn in 2023. | £40.6bn | REC, Recruitment Industry Status Report, December 2025 | | Temporary and contract workers on assignment on any given day in 2024 (estimate), down 17.6% on 2023. | 872,000 | REC, Recruitment Industry Status Report, December 2025 | | Permanent placements made in 2024, down 33.5% from 806,400 in 2023. | 536,400 | REC, Recruitment Industry Status Report, December 2025 | | Recruiters surveyed who said cash flow pressure held back their growth over the past 12 months. | 42% | REC, Recruitment Industry Status Report, December 2025 | | Recruiters surveyed who said cash flow pressure affects their ability to invest. | 61% | REC, Recruitment Industry Status Report, December 2025 | | UK recruitment enterprises in 2025 (31,225 in 2024, 29,635 in 2023). | 31,345 | REC, Recruitment Industry Status Report, December 2025 | | People employed in the UK recruitment industry in 2024, down from 243,118 in 2023. | 236,470 | REC, Recruitment Industry Status Report, December 2025 | | Invoice finance and asset-based lending that UK Finance members provide to UK businesses at any one time. All sectors, not recruitment only. | Over £20bn | UK Finance | | Turnover of the businesses using UK Finance members' invoice finance and asset-based lending in 2024. All sectors. | Over £315bn | UK Finance | | Owed on average to each UK business affected by late payment. All sectors. | £17,000 | Small Business Commissioner research, July 2025 | | Owed to UK businesses in late payments at any one time (estimate). All sectors. | £26bn | Small Business Commissioner research, July 2025 | | Bank of England base rate, in force since 18 December 2025. Invoice finance discount charges are usually priced as a margin above it. | 3.75% | Bank of England | Source: Recruitment and Employment Confederation (December 2025), UK Finance, Small Business Commissioner (July 2025), Bank of England
About these figures
We read each figure at its source on 11 October 2026; the base rate updates automatically from the Bank of England's data. The REC figures are estimates for the whole UK recruitment industry. The invoice finance and late payment figures cover every sector; we could not find published figures for recruitment on its own. We have removed earlier figures for recruitment debtor days, fees and the share of agencies using invoice finance, because we could not trace them to a published source.
Questions
What share of recruitment agencies use invoice finance?
We could not find a published, sourced figure for this, so we don't give one. UK Finance publishes totals for invoice finance across all sectors, not by sector.
Why does cash flow hit temp agencies harder than other businesses?
The agency pays its temps every week but is paid by clients weeks later. By law it cannot hold back a worker's pay because the client has not paid (regulation 12 of the Conduct of Employment Agencies and Employment Businesses Regulations 2003). So it has to fund the gap itself or borrow.
Where do the recruitment figures come from?
From the Recruitment and Employment Confederation's Recruitment Industry Status Report, published on 8 December 2025. They are the REC's estimates for the whole UK industry.
How invoice finance works for agencies: recruitment invoice finance, payroll funding and staffing agencies. Late payment across all sectors: UK late payment statistics.
Founder & Managing Director, Muswell Rose, founder and PSC of Best Business Loans Ltd
Adam is the founder and managing director of Muswell Rose and a founder of Best Business Loans Ltd, the company behind Market Invoice. He spent over three years as managing director of Penny, a UK invoice finance business, and his career runs through insurance, mortgages, commercial finance and fintech lending. He writes the Market Invoice library.
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