Recruitment industry may now feel the pinch
After avoiding the demise that other sectors have already suffered, new research may indicate tough times ahead for the recruitment industry.
New research looking at 1400 employers in the UK has has shown results indicating that the recruitment industry may be in for a tough time. Three out of every four employers has said that it has put recruitment plans on hold until such time as the present economic uncertainty passes.
The firm conducting the research has taken up to 3000 phone calls per week from employers asking about redundancy. It's bad enough having to downsize staff but in this day there is a very real prospect of employees looking to capitalise on firms making mistakes in their redundancy process. Such mistakes can lead to costly payouts at employment tribunals.
It's bad news for the recruitment industry general as it spells a shrinking of their markets. Recruitment agencies themselves will likely have to downsize themselves if they are to survive this tricky economic period.
