Soft landing rather than recession
10 September 2012
Despite most banks seeing their market value halve over the last year, recruiters are in good shape to weather any economic storm, David Silver, managing director of investment bank Robert W Baird tol
Despite most banks seeing their market value halve over the last year, recruiters are in good shape to weather any economic storm, David Silver, managing director of investment bank Robert W Baird told Recruiter's forum.
Silver said recruitment agencies had more flexible cost structures and assets, which could be transferred should the economy crash into recession.
He added that a review of his recruitment clients in 2007 reported strong growth even in November and December when the credit crunch started to bite.
"Remember the economy is still predicted to grow in 2008 (1.6% GDP growth) and 2009, albeit more slowly."
Stephen Blackman, a senior economist at Royal Bank of Scotland, told recruiters that he did not think a recession was likely.l See 14 May edition for full coverage of Recruiter's Awards for Excellence, supported by Thomas International, and also visit www.recruiter.co.uk/awards.
Silver said recruitment agencies had more flexible cost structures and assets, which could be transferred should the economy crash into recession.
He added that a review of his recruitment clients in 2007 reported strong growth even in November and December when the credit crunch started to bite.
"Remember the economy is still predicted to grow in 2008 (1.6% GDP growth) and 2009, albeit more slowly."
Stephen Blackman, a senior economist at Royal Bank of Scotland, told recruiters that he did not think a recession was likely.l See 14 May edition for full coverage of Recruiter's Awards for Excellence, supported by Thomas International, and also visit www.recruiter.co.uk/awards.
