NEW YORK, USA: The deteriorating global economic environment would significantly impact the recruitment market in 2009. Even in countries expecting GDP growth in 2009, the impact of the financial slowdown is restricting recruitment. A key challenge for staffing firms is dealing with the growing number of job applicants.

In the US, temporary employment declined by 76,000 jobs in January 2009, the 24th monthly reduction in temporary jobs over the last 25 months. The decline of 22.7 percent on a year-over-year basis was the largest decline since 1990. In Canada, employment fell by 129,000 in January 2009, driving the unemployment rate up to 7.2 percent. UK GDP growth is forecast to decline by 1.3 percent in 2009. In France too, the macro-economic environment is weakening faster than what was expected.

The publicly traded staffing companies have seen their share prices fall drastically. Analysts have downgraded the forecast earnings for these companies, says the newly released Market Research Report 2009 by Reportlinker.com.

Global staffing companies feel they are in a better position than smaller companies to manage the current crisis. Smaller staffing agencies are more vulnerable to an economic recession because they depend on high margins to ensure profitability.

However, recruitment agencies remain optimistic. They are adopting techniques to manage the crisis. They are training consultants and targeting new businesses. They are also evaluating their business models and focusing on cost cutting measures. Staffing companies are trying to achieve their targets with a smaller client base.

Recruiters with better geographical as well as sector diversification are in a better position to handle the financial downturn. Recruitment companies are strengthening their position in emerging markets such as Eastern Europe, India, Latin America and Asia. The focus on these markets is becoming an integral part of their long-term strategy. The increasing penetration of temporary staffing is creating potential opportunities for staffing companies in these emerging economies.

Most recruitment agencies believe that there would be a clear picture of industry outlook after the first quarter of 2009.

The report analyzes the global recruitment market, with focus on US, Canada, Germany, UK, France, China and India. It analyzes the regional market size, key trends and market forecast. Apart from providing a competitive landscape of the market, the report also profiles the major staffing companies, with a discussion of their key business strategies and significant developments.