Recruitment, labour hire companies collapse amid worker reluctance to swap jobs

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A slowdown in economic growth has tightened the jobs market, putting recruiters and staffing agencies into liquidation.

A spate of recruitment and labour hire companies have crumbled recently as the slowing economy makes employers more reluctant to fork out money to external recruitment firms who are struggling to fill job vacancies with qualified candidates.

“It’s no secret that there are less eligible and available candidates applying for new jobs. Employees are reluctant to swap jobs during periods of economic uncertainty,” Ward said.which has helped ease shortages of skilled workers, as well as put pressure on housing supply. The federal government’s changes to visas have made it easier for migrants to fill in-demand roles and plug skills shortages.

Insolvency Australia director Gareth Gammon observed that recruitment agencies were struggling with more vacancies than they could find qualified candidates for.

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