Plimsoll has responded to a “backlash” of comments from recruiters after reporting a quarter of recruitment agencies and 9,333 jobs are at risk due to the current economic climate.

News that the industry is still growing at a yearly rate of 6% led to an updated version of the report which found 21% of recruiters selling at a loss and 43% making less profit than last year. The updated analysis put the number of recruitment companies at a high risk of failure at 168.

David Pattison, senior analyst on the project, said: “In such stretched economic conditions, companies need to assess and understand who is a long-term threat in the market and which companies are following an unsustainable strategy.  This knowledge could be the difference between spotting a potential acquisition at a bargain price and becoming one.”