Tom Sweeney

It's a coming of age tale….

Equilibrium: Apparently it applies to more then grade 10 science class…

Posted by sweens on March 23, 2009


Today I had a coffee with a professional who has a similar profession to my own.  During our coffee chat it was pointed out to me that there is a sense of equilibrium that exists within the recruitment world and the labour market.  This relationship is as follows:

 

The labour market always has either too many jobs with too few resources or too few jobs for too many resources (supply and demand). 

 

I thought this was an interesting way to look at the recruitment world because it is an accurate statement.  If the labour market were ever to balance out – where we would have an equal number of jobs to resources – there would be no need for the recruitment industry.  So what can we say when the industry is on either side of this equilibrium?

 

It seems to be common knowledge that when you are in the recruitment industry and the economy is booming and people are hiring – the times are great.  Money is to be made and it has been described as shooting fish in a barrel.  Smaller recruitment companies are formed and there is a lot of competition.

 

When times are bad, those smaller companies tend to fold or down-size and the whole industry is affected.  When the number of placements drops there is less to go around for everyone in the industry so things obviously decrease in size.  The larger companies can often look at this situation in a positive manner because smaller companies are more likely to fold during this time and offer them less competition during a recession and once the market comes out of the recession.

 

All in all, the recruitment industry is heavily reliant on the economy and depends on the fact that employers can not satisfy their own staffing needs, either due to too many or too few candidates.    

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