Dynamic Business Logo
Home Button
Bookmark Button

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.

People who read this, also liked:
Part-time workers prop up economy
Retrench or Retain?

What do you think?

    Be the first to comment

Add a new comment

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.

View all posts