Press Release: Reports of recruitment firm insolvencies should be a wake-up call to Government
Responding to reports from City AM that the number of recruitment businesses appointing liquidators has risen significantly in the last six months, Samantha Hurley, UK Managing Director at the Association of Professional Staffing Companies (APSCo) comments:
“These are hugely concerning statistics and should serve as a warning to the Government that some of its harsher reforms are causing more damage than good. Recruitment firms play a hugely critical role in the economy. Businesses cannot operate or grow without the right people, and with increasing skills shortages and a rise in the number of job applicants per CV, employers are struggling to source the right people – a challenge recruiters are best placed to resolve.
“I stand by the comments of other leading bodies such as the CBI, IoD and the Federation of Small Businesses in the view that there are inadequacies in the Employment Rights Bill that need to be addressed as it continues to go through committee stage. Rushing through changes against the advice of those that are closest to the issue will only create more headaches for the Government, the UK and businesses. Yes, reforms are needed to make employment fairer, but it should not be to the detriment of others. The reaction we’ve seen to elements of the Employment Rights Bill, alongside the additional burden of NICs increases clearly demonstrates that the reforms are less than perfect.
“Professional staffing companies have been turning to international markets such as the US and Germany to mitigate against the uncertainty in the UK over the last six months, however, given the headwinds of the Trump tariffs and international slowdown as evidenced by the IMF, these markets are also less buoyant. The strength of the UK’s recruitment market needs to be reinforced and continuing on the same trajectory simply won’t have that impact.”
Press contact
Vickie Collinge
01582 790 705
