Reform to the welfare system has been announced by the government in a move that could have a dramatic effect on the recruitment industry.

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The Recruitment & Employment Confederation has announced that the government's planned changes to the welfare system will have a marked impact on the recruitment industry.

These changes include jobseekers being encouraged to take up temporary positions in order to gain skills and experience that could open up doors for future permanent employment.

When looking at how to set up a recruitment agency, these developments are key: jobseekers will need the support of recruitment agencies to aid them in finding temporary work to expand their skills and help secure a permanent position.

Director of external relations at the REC, Tom Hadley, said that: "Recruitment professionals will continue to play a central role by working with Jobcentre Plus and welfare providers to make this happen."

He suggests the government needs to tap into the recruitment expertise available.

These changes follow on from Iain Duncan Smith's pledge last week to shake up the benefits system.

Those wondering how best to set up a recruitment agency to help make the best of these reforms could outsource back office requirements in order to allow focus to remain on assisting and advising jobseekers as much as possible.