December’s cold snap, the impending VAT hike, and the government’s austerity drive

obstacles facing businesses 150Many obstacles that for UK businesses has meant there is a lot of uncertainty hanging over the recruitment industry

There is a large amount of restructuring in the recruitment industry with some sectors performing well and others suffering contraction. With the private sector having to take the brunt of the public sector cuts and provide jobs for the 2.5 million currently unemployed, many businesses are still uncertain on their recruitment plans.

Many firms are still putting their recruitment on a freeze until the market picks up properly, which is putting a heavy burden on the larger firms to try and pick up the pieces. The recent budget has not helped the small SME’s to an extent where they are free to recruit without affecting the bottom line.

Many companies are also focusing on experienced candidates rather than graduates. With the uncertain times employees are not will to risk training a new graduate who may not suit the role.

Many employers when asked the question on why they aren’t recruiting answered that there was no need, business was reasonable, however some employers outline the fact that there is a skills shortage. Many graduates just don’t possess the necessary skills upon leaving university to enter straight into a role. This emphasises the need for graduates to get as much experience whilst studying so they have the necessary skills to gain their graduate job.

Many firms are still optimistic about 2011, businesses will moving out of an idle 2010 but with the public cuts, agency workers regulations, VAT hike, and various other things they still have to be cautious. This is highlighted by the 0.5% drop in GDP, making business even more uncertain whether we may enter a double dip recession.

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