Recession looming for small recruitment agencies

Nearly a quarter of the UK employment agencies are showing
the signs of recession, according to research by Plimsoll Portfolio Analysis.

The research shows that 24 per cent of the 659 companies
surveyed are losing profit and believe the market is tightening and becoming highly
competitive. These tend to be the smaller companies that are getting left out
of an otherwise healthy market, claims the research.

But the survey discovered that 43 per cent of employment
agencies are showing no signs of recession. Only 7 per cent of firms are
adopting a cautionary approach, using profit to pay off debts.

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More than a quarter of firms are planning to go for growth
despite threats of a recession, the survey found.

By Karen Higginbottom