Signs show Recruitment can buck the trend

As the media talks about the impending doom and gloom in the global economy, there are stories beneath the surface that suggest that the situation for Staffing and Recruitment is not as bad as it may seem.In recent weeks, changes have taken place at the top of the UK government. The cost of living is soaring, government borrowing costs have risen and the Bank of England has had to step in to steady the ship. Today, the government has acknowledged that the UK is in recession and responded by raising taxes and introducing spending cuts.It’s a similar story in the US. Currently, inflation is at a lower rate than in the UK, but it's high enough to raise concerns for many households and business leaders. Following the mid-term elections, the Republicans look to take control of the House of Representatives, which means it will be difficult for Joe Biden to pass new legislation during his remaining two years in power.Despite all this, the Recruitment and Staffing industry is projected to grow 11% this year* and the US and UK make up 38% of global staffing revenue. It's not quite the 20% that we enjoyed last year, but it's still an increase.In the UK, there is still a labour, skills, and talent shortage. Businesses still need to hire people and finding those people is proving difficult, which emphasises the need and value of good recruiters. Where businesses are nervous to recruit permanent staff, there is a growing demand for contract labour, pointing toward a change in the balance of appointments rather than a decline.In the US, the Bureau of Labor Statistics reports a 28% increase (193,000 jobs) in 2022, and job openings are still being posted.It would be foolish to think that inflation and rising energy prices won’t have an impact on disposable income, but job cuts may not be so high in a shallower downturn.In a world of uncertainty and rapid change, adaptability, innovation, and positivity are going to be important differentiators for your Staffing and Recruitment business.*Source: SIA