Credit crunch comes to bite UK recuritment markets
Bad news for recruitment agencies as new research shows drastic reduction in employers recruitment.
A law firm has produced a report after surveying 1400 employers in the UK. the conclusions were that three out of every four employers where putting their recruitment plans on hold until the present economic downturn begins to recover.
Up until now recruitment markets have remained stable, if not buoyant. If this research is indeed a reflection of a broader picture then, for recruitment firms, there simply won't be as many vacancies to go around.
Employers are having to get to grips with redundancy laws to reduce their staff numbers, a challenge within itself. Further recruitment at the moment may simply be piling up further heads to enter a redundancy process a little way down the line. The law firm Peninsula has reported taking over 3000 calls per week from employers asking about redundancies.
Given the reduction on overall recruitment opportunities this signifies it seems likely that recruitment agencies will also have to consider downsizing if they are to survive.