A spate of recruitment and labour hire companies have crumbled recently as the slowing economy makes employers more reluctant to fork out money to external recruitment firms who are struggling to fill job vacancies with qualified candidates.
Public insolvency notices published by the Australian Securities and Investment Commission show a range of staffing companies, such as The Nudge Group, Digital Gurus Recruitment, and multiple labour hire businesses, have fallen into the hands of liquidators or administrators over the past four months.
Recruitment labour hire companies are collapsing amid an economic slowdown.Credit: Dion Georgopoulos
National insolvency firm Mackay Goodwin director Grahame Ward, who is the administrator for Digital Gurus, said times were challenging for recruiters amid fierce competition for new candidates.
“It’s no secret that there are less eligible and available candidates applying for new jobs. Employees are reluctant to swap jobs during periods of economic uncertainty,” Ward said.
“Some industries such as logistics, construction, childcare, and nursing appear to be struggling now to attract local candidates.”
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