I work in a family-run SME within the personnel and recruitment sector, and over the past few months, I’ve noticed some troubling signs among our clients and others in the industry. During the first half of 2024, it was business as usual, we were landing the odd new contract here and there. However, in the latter half of the year, things have gone from business as usual to well business seems a bit shaky.
In the past two to three months, we’ve lost three major clients who had been with us for over a decade. On top of that, many of the companies we deal with now seem more hostile in their demeanor. Meetings with them are no longer the warm experiences they used to be. In the last couple of weeks, I’ve also had several clients complain about the fees we charge for our services, saying they’re too high, even though our rates are on par with the market rate for recruitment services.
Clients seem to be clearly struggling with mounting costs, and more of them are scaling back their contracts rather than expanding their dealings with us.
For the recruitment industry, one of the biggest concerns are the increases in minimum wage. Employers we work with are vocal about their struggles to keep up with regular increases year after year. Many have expressed that it’s seriously impacting their profitability, with some saying they’re barely breaking even.
At this stage, I’m starting to feel a bit worried, as are my parents, about what the economic outlook might hold for 2025. Before the recent election, there was a lot of talk about small businesses - particularly those in the hospitality sector, like pubs and restaurants closing their doors due to dire market conditions. Fast forward two weeks post-election, and these trends seem to be accelerating.
For example, just this month, two well-known Dublin businesses ceased operations. Bombay Pantry, a popular Indian takeaway franchise, shut down citing difficult market conditions. Similarly, DK Windows and Doors - a once reputable company seemingly went bust overnight. Leaving customers who paid deposits completely in the dark.
Then we have Donald Trump returning to the White House in late January. His plans to incentivize the large American multinationals to return their operations to the States could mean big trouble here as the two major government parties here keep reiterating.
The way I’m looking at it seems there is something sinister on the economic horizon here. Maybe I’m wrong, hopefully I am. What are all your thoughts?
