A Guide to the Executive Search Industry
The recent KPMG and the Recruitment and Employment Confederation’s report showed a sharp drop of recruitment across the UK in July 2025. This is thought to be due to rising employment costs and concerns about the economic outlook, with young people hit hardest by the drop in recruitment.
Just 57% of private sector employers plan to hire in the next three months, down from 65% in autumn 2024, as they grapple with April’s £25bn increase in employer national insurance contributions (NICs) and other rising costs, according to the CIPD.
This aligns with recent reports of record closures among UK recruitment firms. According to a City AM analysis of government insolvency filings, 120 firms have gone into liquidation in the past six months – the fastest rate in 15 years, highlighting mounting economic pressures and a slowdown in hiring.
Earlier this year, major recruiters reported falling earnings and workforce cuts: Hays saw a 10% drop in group fees, while Robert Walters reduced its workforce due to challenging market conditions. Notably, Hays’ profit fell by half despite cost-cutting measures. PageGroup also reported lower half-year profit, stating, “Permanent recruitment continued to be impacted more than temporary, as clients sought flexible options and permanent candidates remained reluctant to move jobs.” Robert Walters’ shares have fallen more than 60% year-to-date.
