KPMG: Firms reluctant to take on employees

KPMG: Firms reluctant to take on employees

5.8.2008

Recruitment is noticeably slowing down as firms become less inclined to take on new employees in the current economic climate, a leading firm has found.

A survey carried out by auditors KPMG found that half of UK businesses polled said they were planning to halt recruitment and even cut down their workforce.

When asked the same questions one month previously, only 29 per cent of employers said they would take the above actions, illustrating the increasing panic of the credit crunch is inspiring, CRN reports.

However, some firms are concentrating on the advantages these conditions could bring to their companies, as managing director of React Technologies Jess Thompson Hughes points out.

"Recessions can be a good thing because legislation has made it almost impossible to sack staff and now there is an opportunity for people to get rid of dead wood."

In recent months recruitment freezes have been becoming increasingly foreseeable, with Trinity Mirror announcing a halt on graduate recruitment schemes.

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