Jobs economic weathervane – The Economic Times

Although the US economy has been propped up throughout the pandemic, strain is starting to show with record inflation tightening its grip on the population’s purse strings. If global banks choose to tackle this issue with interest rate hikes as expected, a recession could be imminent.

Employers generally look to reduce their headcount during times of economic uncertainty, which, of course, represents a challenge for staffing and recruitment agencies. However, if they are switched on and ready to react, recruiters can turn the situation to their advantage….

The recruitment industry is normally a reliable barometer for impending economic uncertainty. For recruiters, there are a number of telltale signs that a recession is on the way. Widespread hiring freezes are a primary indicator that something is going on behind the scenes. Businesses monitor output closely, and when revenues start to dip, cost savings become a primary concern. As a first step, organisations often attempt to streamline their headcount.

Before embarking on a full organisational restructure, companies are likely to commit to a recruitment freeze. This is generally the precursor to lay-offs, something that can have an even greater effect on the wider recruitment landscape. There is no doubt that the early stages of a recession are immensely challenging for staffing and recruitment firms – recruiters are suddenly swamped with candidates and left with very few roles in which to place them….

From ‘How Will a Recession Impact the Recruitment Industry?’, Mindscope