Economic anxiety and recruitment - what we can expect of clients and companies in the next two years

From Brexit in the UK to the American Presidential election, we’re seeing unprecedented levels of uncertainty in recruitment.

While online recruitment software offers maximum flexibility in changing circumstances, it doesn’t have a magic wand to wave over politics or economics! So what is the future likely to hold for employers and recruitment consultancies?

Slowing recruitment is a feature of political uncertainty

In the UK, a couple of recent recruitment industry surveys show that there are substantial regional variations in the response to the Brexit vote. London has seen lower placement of permanent candidates, possible reflecting the concerns about the capital and its role as a global financial sector - for recruitment consultancies this may mean there is an upside - high level temporary vacancies in the finance industry may increase rapidly until the Brexit negotiations end and SAAS recruitment software is sensitive to such rapid changes in the recruitment climate, allowing swift deployment of candidate cvs for such positions.

Regional growth in both temporary and permanent recruitment since July appears to have been related to increasing levels of local confidence which may relate to anticipated election of popular local mayors in places such as the West Midlands 2017. However, this increase is still lower than the historical average, suggesting that hiring is still sluggish for this period of the year. The moderate pace of growth in permanent vacancies suggests that recruiters would do well to ensure their recruitment system drills down to key criteria as the competition to place candidates in a limited number of roles means employers will reject time-wasting applicants … and the recruitment agencies who forwarded them.

Temporary recruitment across Europe

Across Europe, economic turbulence is contributing to innovative solutions too. The 4.6 million unemployed in Spain are using apps that help them to find shift-work literally on the day. From bar work to retail, such apps have thousands of jobseekers and employers ‘match-making’ for a day or a week. These job portals reveal a growing trend in allowing people to earn a little extra money but fail to achieve breakthrough into permanent roles or even better paid temporary employment. As evidence, the unemployment rate is still running at 20%, the second highest in Europe after Greece. Many economists believe that this turbulence is likely to increase the ratio of low-skilled to highly-skilled workers Spain and certain other European economies which can pose a latent threat to economic recovery. Where are the higher skilled candidates? Recruitment databases suggest that European candidates are more readily on the move than at any time since World War Two and that while some regions are proving less attractive, Scandinavia, the USA and above all, Canada, are intensely desirable work locations.

International recruitment

Elsewhere, local conditions are turbulent too. A business publication in Oman reports that “Current economic conditions are forcing employers and employees to agree to six-month job contracts … one recruitment firm reported it now deals only in Omani staff placements as expat job openings have shrunk so much.” The facts to back up these assertions? The latest statistics released by the National Centre for Statistics and Information shows that the number of workers with advanced qualifications – diplomas, graduate and post-graduate degrees and doctorates – decreased nearly 2,000. Recruitment databases show that 300 skilled expatriates are leaving Oman every month. So where are they going? Other middle eastern countries where placements are more secure and economies more buoyant.

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