Will a recession lead to businesses impose a hiring freeze?
Recently the Bank of England has warned that Britain is heading for its longest recession, with no recovery until Summer 2024. This comes after an interest rate hike to tackle inflation and rising prices.
The last recession in the UK was in 2020 due to the Covid-19 lockdowns.
How will a recession impact the recruitment sector?
A recession is usually bad news for the recruitment sector. With small businesses to large corporates seeing a decline in their sales and profits, they may freeze hiring, lay off staff, put on hold annual pay raises and reduce spending to cut down on costs to help them weather the downturn.
Recession and the contractor market
While this can be a scary time for the recruitment sectors, the contract staffing market usually grows through a recession.
What is Contract Staffing?
Contract staffing is when a recruitment company sources talent to work for employers on a contract basis.
How does Contract Staffing benefit your business?
Flexibility.
During a recession, some businesses may look to cut down on the long-term costs of hiring full-time employees. Contract staffing enables the work to go on for a fixed duration without hiring someone full-time.
Temporary staffing can temporarily reduce costs and make your business more agile and helping you through a recession.
If you’re looking for exceptional candidates for contract staffing in the Tech Sector we are here to help.
We’ll work with you to match the right candidate for your role in both permanent and contract positions, helping you to make it through the current economic crisis.
