NEWS

NEWS

UK Recruitment Agencies Favour US Expansion

Survey data from CV-Library and its US sister company Resume-Library has found one in five UK recruitment consultancies have expanded or plan to expand into the US attracted by higher fees, salaries, and promising growth opportunities. According to their data 21 per cent of recruitment agencies across the UK have already expanded into the US, or plan to do so.

As the UK job market softens, insolvencies in the recruitment sector have more than doubled between 2021 and 2025 (+143 per cent), adding to the pressure for firms to find new opportunities. British recruiters are therefore turning their heads to the US market for growth. Of those planning or considering expansion, 21 per cent cite more promising growth opportunities across the Atlantic as a reason for doing so, while the same proportion point to the potential for higher salaries to translate into higher recruitment fees.

A further 13 per cent of UK recruitment agencies said they were keen to tap into a much larger talent tool, with greater demand for specialist skills, while 8 per cent said international diversification and growth was a key motivation.

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“Economics are a major driver behind UK recruitment agencies looking to the US,” says Ben Killeen, Recruitment Expert at Resume-Library. “Placement fees are typically around 5 per cent higher than in the UK and are often charged against higher salaries, particularly in well-paid cities, meaning a single placement can generate significantly more revenue. Shorter notice periods can also help agencies move candidates into roles faster and reap the benefits financially sooner.

“Getting established can be challenging,” Killeen added, “with the first three to six months often requiring heavy investment before results start to come through. But once an agency has built momentum in the market, the potential for stronger returns can make the US a compelling long-term growth opportunity.”

Beyond the stronger economic and job creation opportunities in the US, the recruitment market also offers several differences that can make it an attractive market for UK recruiters.

According to CV-Library’s guide to recruiting in the US, permanent placement fees typically sit at around 20–25 per cent of first-year salary in the US, compared with 15–20 per cent in the UK. With US salaries also generally higher, this can increase the potential value of each successful placement.

The pace of hiring can also differ. Candidates in the US typically have shorter notice periods than those in the UK, potentially allowing agencies to make placements and generate revenue faster.

Contract recruitment is another potential attraction, with contractors typically paid bi-weekly in the US, compared with monthly payroll cycles in the UK. This can create a more frequent billing cycle and potentially support stronger cash flow for recruitment businesses.

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Newsdesk
Newsdesk
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