Recruitment Firms Feel the Heat of an Economic Downturn

                                                                                         

Currently, companies across diverse industry verticals are slowing down their recruitment process and in many cases have opted to freeze. As a result of this, small recruitment firms are feeling the heat. Small and mid-sized recruitment firms are witnessing a drastic decline in their revenues over the past few months. Due to the worsening economic crisis, recruitment by companies has been frozen or reduced for most part of the financial year. This scenario across businesses presents a bleak future for the recruitment firms.s

The economic slowdown has severely impacted the job creation capacity of major industrial sectors. The ASSOCHAM Research Bureau recently tracked job vacancy data in 30 sectors to analyse the creation of new jobs in the economy. The study by the premier business chamber indicates that sectors like information technology (IT), financial services, consumer goods, retail and real estate have witnessed a considerable decline in the creation of new jobs because of the economic slowdown. With employment outlook of India under severe strain, small and mid-sized recruitment agencies are feeling the heat.

The employment outlook for December 2008 and January 2009 period, which is considered as the best period for hiring agencies, is showing a downward graph. Majority of the management recruiting business have recorded over 50% drop in business. With the scenario appearing gloomy, recruitment companies have now resorted to cost cutting measures. Some of the companies are also realigning their operations to the changing times.

Nevertheless, even as the job freeze continues, small and mid-sized recruitment firms are hopeful that the market will bounce back soon. Head hunters are utilising this time to consolidate their business and focus on other domains like healthcare and sports, which seem fairly recession-proof.

About the author:
David Parks is a well known author and has written articles on B2b Marketplaces,and B2B Portal, suppliers, Manufactures and many other subjects.

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