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Downturn hurting recruitment companies

Recruitment companies are really feeling the pinch in the downturn, after human resources group Talent2 International Ltd recorded an annual net loss of $7.6 million.

Hiring by businesses for permanent positions has slowed dramatically in the downturn, leaving recruitment companies hanging by a thread. Talent2 recorded a 15 percent drop in revenue for its recruitment division, with earnings before interest, tax, depreciation and amortisation (EBITDA) at a loss of $2.4 million, down from a profit of $10.8 million in 2007/08.

Managing director Andrew Banks said the sudden drop in consumer confidence in October 2008 resulted in hiring for permanent positions coming to a halt, which significantly impacted revenue.

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Jessica Stanic

Jessica Stanic

Jessica has a background in both marketing and journalism and is dedicated to making the website the leading online resource for small to medium businesses with ambitions to grow.

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