A faltering economy in Switzerland is hitting the staffing industry, according to the Swiss Staffingindex report released by industry group swissstaffing. Perm placements fell by 20.8% year over year in the second quarter, and temporary staff working hours fell by 4.9%.

The declines in both areas indicated an economic downturn, according to swissstaffing.

“Companies are currently being extremely cost conscious,” Jana Jutzi, CEO of staffing firm Careerplus, said in a swissstaffing press release. “Instead of recruiting new employees, they are merging positions or looking for bridging solutions.”

Despite the decline, there are some roles that continue to receive interest, the report noted.

“Companies are continuing to come to us with demanding profiles,” Jutzi said. “In the IT and healthcare sectors in particular, there are certain roles that are difficult to fill. The talents know their worth. Negotiations often break down due to requirements that companies are unable to fulfill.”

The report also noted faltering demand for construction staffing despite a booming housing market in Switzerland.

“The market conditions in the construction sector are difficult,” Susanne Kuntner, CEO of staffing provider meinjob, said in the swissstaffing press release. “Our clients can currently complete most of their jobs using their permanent workforce. As a result, the number of leased temporary workers has fallen significantly year on year for the first time in years.”

For staffing providers, swissstaffing said the focus is turning to helping job seekers quickly enter the labor market.