According to Bibby Financial Services, 79% of recruitment agency owners and managers said the economy was the single biggest challenge facing the recruitment sector and 81% said the unstable economy is the biggest factor affecting their clients.
Nearly two thirds (65%) said the credit crunch will prove to be their biggest test over the next year.
To weather the storm, 17% of recruitment firms have frozen pay rises and 16% have made redundancies.
David Robertson, global chief executive at Bibby Financial Services, said: "While the prognosis seems gloomy, it is important to bear in mind the recruitment sector will not just grind to a halt. Businesses will always need to recruit new people and even if firms are looking for just one new employee, it is more important than ever it is the more suitable candidate with the best experience, qualifications and attributes."
