Blue collar recruitment shrinking fast

The recruitment industry shrank by an estimated “7% to £26.22bn in 2008″, and contraction is set to continue in 2009. Predictions after taking into account an expected recovery beginning in 2010,  state that the industry will contract by 3% between 2009 and 2013. The MBD Commercial Due Diligence reflects “the slow level of growth that is likely to occur during the recovery period once the market stabilises.”

Temporary Recruitment
Temporary recruitment will be hit particularly hard, with the market shrinking by 12% to £20.47bn in 2009. However post-downturn, growth in the temporary market is expected to be sustained, with a boost expected from The 2012 London Olympics.

Permanent Recruitment
The forecast for permanent recruitment notes that the value of the permanent placements sector is forecasted to contract by a significant 10% in 2009 as businesses are unable or unwilling to expand employee numbers due to concerns about future levels of prosperity.

Healthcare and Education
Healthcare and Education recruitment will withstand and increase size against the prevailing headwind of the global financial downturn because of the nature of that particular sector coupled with the political pressure for monetary protection.

Sector
Between 2008 and 2013 the sector is forecast to contract by 1% cumulatively, reflecting the severity of the downturn and the slow speed of recovery. Hopefully, shareholders and analysts believe that we have taken speedy and proportionate action to ensure the long-term future of the business.