The big freeze in the public sector

Cuts will have a huge impact on the fortunes of the public sector, particularly for those recruitment agencies with a sole focus on the public sector.

With cuts taking effect in a matter of months, recruiters have a limited time-span in which to avoid becoming stagnant as opportunities in the sector dry up. Commenting on the announcement that the civil service will undergo a recruitment freeze as part of the cuts in public sector expenditure, Edward Winterton, recruitment finance spokesperson for Bibby Financial Services, said: “I would urge these businesses to ensure they have enough liquidity to absorb the impact of a cut in permanent placements within the sector.

The recruitment freeze may, however, have a number of positive benefits for agencies operating in the private sector, as the freeze could prompt a number of high quality candidates who may previously have targeted public sector vacancies to look further afield. These agencies must ensure that, as business levels begin to grow, they have enough cash flow to invest in business development.”

25 May 2010

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