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?
