The UK economy has experienced major changes in recent years, driven by many factors including global influences, technological progress, and changing consumer behaviour. As it continues to evolve, its effects on the recruitment and search market also shift.
Growth periods boost recruitment, while uncertainty prompts cautious hiring, greater competition, and a reliance on temporary roles. Inflation, Brexit and the Covid-19 pandemic have further shaped candidate expectations and employer confidence. These challenges are evident in an 11.8% drop in UK vacancies from November 2024 to January 2025 compared to the previous year.[1]
Hiring by UK firms has slowed to such a degree, that the value of the UK recruitment market declined by an estimated 3% in 2023 as a result.[2]
Many recruiters are using these challenges as drivers for change, and are adapting their offering accordingly, looking towards new markets filled with opportunity.[3]
As the economy shifts towards emerging industries such as renewable energy, healthcare and care services, agencies may branch out beyond traditional sectors and expand their service offerings.
With the latest PwC Green Jobs Barometer revealing a surge in green job adverts across the UK, with a 9.2% rise in the number of green job adverts nationwide despite a 22.5% contraction in the overall job market, the opportunities for those recruiters able to pivot are clear.[4]
It’s not only in the UK where those opportunities can be found. In thriving sectors such as renewable energy in particular, the drive for specialist recruitment is worldwide, putting increasing pressure on recruiters to supply a pipeline of talent across a wide range of roles. This demand means new openings in international regions such as Europe and the USA.
With growth comes risk
Along with the potential for growth, however, comes the potential for risk. Naturally, a shift into any new sector or country can expose recruiters to new liabilities.
While your recruitment agency is likely to already have standard public liability insurance, these standard covers may not cover the specific risks that come with placing in particular geographical areas or sectors.
Additional factors recruiters may be unaware of include the fact that if the healthcare work involved is classed as domiciliary care, this may not be covered under your current recruitment insurance. You may also need specialist advice if you have EU placements or USA contracts. If you’re going into renewable energy areas, are you going to be placing offshore?
A conversation with your insurance broker is vital to ensure existing cover is extended to mitigate any new potential threat.
By involving your broker, they can review your current insurance cover and identify any vulnerable areas, or any potential protection gaps in relation to specific new sectors.
Additional insurance you may need
Some of the types of insurance you may need to consider are listed below:
Energy contractors’ cover - our firm may need this if it deals with sectors such as renewable energy, oil and gas, onshore or offshore.
Medical malpractice cover - this may be required if you’re moving into the healthcare or veterinary sectors.
Drivers’ negligence cover—this is key if you’re looking to place drivers into active roles.
Business travel cover - if you’re embracing opportunities that will result in your own frequent travel abroad, it may be that you’ll need business travel insurance.
At REC Insurance Services, powered by Marsh Commercial, we’ve been providing insurance solutions to recruiters for over forty-five years. So, whether you’re a start-up recruitment business or a large multinational, moving into new markets, we have the recruitment insurance expertise, advice and solutions to help protect your business and manage the risks you face.
As REC’s exclusive insurance broker for their members, we designed Recruiters Choice, a cover tailored specifically for recruiters' needs, to ensure your recruitment agency is covered for today’s evolving risks.
There’s even a special 10%* discount off recruitment insurance for REC members.
For more information visit call us on 0330 818 7634.
*Included as standard, providing the insurer's criteria has been met, and when you purchase either public liability or professional indemnity cover.
The Recruitment and Employment Confederation (REC) is an Introducer Appointed Representative of Marsh Ltd. REC Insurance Services and Marsh Commercial are trading names of Marsh Ltd. Marsh Ltd is authorised and regulated by the Financial Conduct Authority for General Insurance Distribution and Credit Broking (Firm Reference No. 307511). Copyright © 2025 Marsh Ltd. Registered in England and Wales Number: 1507274, Registered office: 1 Tower Place West, Tower Place, London EC3R 5BU. All rights reserved.
[2] https://store.mintel.com/report/uk-recruitment-market-report