Recruitment feeling the brunt of the recession

[Marcey]

It has been reported on the Guardian (http://www.guardian.co.uk/business/2009/oct/20/recession-insolvencies-begbies-traynor) that recruitment is one of the worst affected sectors by the recession followed by engineering.
Recruitment is feeling the recession from the rising numbers of unemployment. The more Jobs (http://www.careers-jobs.eu/) lost and the fewer vacancies out there has left many recruitment agencies feeling the pressure.

The business rescue and restructuring firm has said that over 134,000 businesses are still showing "material signs of stress". This therefore means businesses are still seriously lacking in resources and cash flow.

Therefore really and truly the affects of the recession is going to take quite a while for both businesses and citizens to recover from.

[Josie]

Marcey you make some good points there and I am sure quite a few recruitment businesses must have gone bust over the last year or so - especially the smaller independant ones? What do you think?

I can imagine the stress they are under though - imagine getting tonnes of applications for one job and then trying to find the right person to put forward etc you know? It can be quite hard!

The worst thing is that people are still losing thier jobs everywhere! Nothing has really stabilised and then you hear about the banks making money and dishing out bonuses again! It makes me mad - they got us into this in the first place and are dealing out big bonuses again! How does any of that make sense hey?

All I can say is that I am happy to be one of the few in a job right now!

[Marcey]

I know it makes me sick Josie!! And the Bonuses are set to increase up to 50% from 2008 for bankers. Apparently this is only because there has been less competition resulting in higher profits.

It has also been said the excessive bonuses are the world’s main cause for the economic down turn?! I thought I was hearing wrong when I heard this... yet they are still being given out!

And with the recruitment agencies have you heard about Hays? and quite a few other large agencies that have been fined for "price-fixing" in order to cut out competition! lol

Isn’t it weird when you see all these companies coming to light with the ways in which they run there businesses?

And in most cases they seem to get away with it.

[Josie]

An increase of 50%????? Thats far more than what I would have thought! How terrible is that! Surely that money should be coming back into the market to try and improve things a bit or something?

I cannot believe they are stilling being rewarded for doing a bad job like that! I measn imagine being paid for all the crap that has been caused! I definately think there needs to be cap non the bonuses so that some of the money is put back into the market!

Wow really? Who have they been price fixing with? How shady are all these people out there?

Its true that they get away with it isn't it! I mean look at the banks......