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Sweden – Staffing firms hesitant on prospects

11 February 2013

Staffing firms in Sweden look to the future with caution as 20% of recruiters expect demand for staffing services to fall in the first quarter of 2013, according to a new survey of recruitment agencies.

The latest research by the country’s federation for staffing firms (Swedish Staffing Agencies) found the majority (60%) of companies expect demand for recruitment services to remain unchanged in the first three months of the year.

Only 18% of companies project an improvement. The federation warned that recruiters overestimated the level of demand in the past. “There is a risk that developments during the first quarter will be worse than expected,” it said.

Uncertain economic conditions have impacted the Swedish staffing industry as firms are cautious when it comes to hiring. “A general economic recovery expected in the second half of this year, but the trend is still very uncertain,” warned the federation. “Continued weak growth is expected in early 2013.”

The survey also found a third of staffing agencies expect a reduction in hiring levels, compared to 11% which anticipate an increase in making new recruits. Over half (55%) expect to have a stable workforce in the first quarter. 

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