A possible economic downturn, the threat of new regulations from Whitehall and Brussels and ongoing trade union attacks are some of the key challenges ahead for the recruitment industry, according to the Recruitment and Employment Confederation.

However, the REC says it is upbeat about the prospects in 2008. Director of external relations Tom Hadley (pictured) says: “So far, the labour market remains in good shape despite the claims in some quarters of a job creation slow-down. It is crucial to avoid self-fulfilling prophecies through headline grabbing and often unsubstantiated scare stories on jobs. 

“The effective provision of both temporary and permanent workers will remain crucial to the performance of both public and private sector employers and we must not lose sight of some of the longer-term resourcing needs.”