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India’s economic slowdown, which has resulted in a drop in hiring activity over the past two years, has hit the recruitment industry hard, reports the Hindustan Times. In an ironic twist of fate, those workers responsible for finding jobs for others are now forced to hunt for work themselves.
Thousands of selection firms, which recruit candidates for mid-and-junior level positions, have closed, as a result of a reduction in hiring intentions and delayed payment of invoices, reports the Hindustan Times.
According to the Executive Recruiters Association (ERA), which represents the head-hunting industry, more than 7,000 selection firms have closed.
Deependra Nigam, Vice Chairman of the ERA, told the Hindustan Times: “As costs are under pressure and recruitment is moving in-house, about 7,800 staffing firms have shut their businesses in the past two years.”
The slowdown has impacted every staffing industry business segment in the human resources market place; including freelancers, start-ups, small and medium-sized firms, and multinational corporations.
Companies are using internal talent and social media to fill general skill positions and staffing firms to fill specialised positions. Head-hunters do not expect to see a marked improvement in the labour market until the third quarter of the next financial year.