Staffing and Recruiting in a Recession.
Over the last 100 years, the United States has gone through many recessions, some longer than others. The one that sticks out the most is probably the great recession from 2007-2009 when the mortgage bubble burst. We also experienced a short recession with the recent pandemic. With interest rates rising, it seems as though another one might be on the horizon. So, what does that mean for the staffing / recruiting industry? And why might now be a good time to invest in a staffing / recruiting franchise business. While some specific sectors may see a sharp drop in business, staffing / recruiting has historically been one of the safer industries to be in. As a major recruiting firm in the U.S., we serve two customers, the candidates we are assisting in their job search, and the clients that need help with hiring. Normally, we see an influx of one or the other, depending on the market, but in general, there will always be needs on both sides of the equation.
Right now, we are experiencing a heightened demand from clients, the entities that need help with hiring. We focus primarily on restaurant, hospitality, and food & beverage markets, and consumers have been rushing back into food establishments and entertainment venues. Travel bookings are back in full swing. Our clients are trying to keep up with this surge while getting employment numbers back to pre-pandemic levels. Should we dip into recession, perhaps we will see a small pull back in hiring, but not as much in other sectors because there are still hundreds of thousands of jobs that need to be filled to meet consumer demand. Regardless of economic conditions, people are always going to go out to eat, just maybe not at that high end steak dinner!
There are other factors that will contribute to more demand for staffing and recruiting services. You may have heard of the Great Attrition, which is the mass exodus of individuals leaving the work force. This was fueled by a pandemic where we saw almost 30 million baby boomers leave the work force in the third quarter of 2020 alone. We are seeing millions of people leave industries they’ve been in for their whole career and migrate to a completely new one. Employers are having to be more aggressive with their packages, offer more opportunities for remote work, and be more open to hiring people from different industries. You can also look at factors like the U.S. birth rate. The birth rate has been declining exponentially over the past decade. For those reasons, we are projecting a strong demand for professional staffing / recruiting services.
One thing that is always in demand, is a strong recruiter. One that is prompt and professional, follows through, and coaches the candidate through the entire interview process. That is what we do here at Patrice & Associates. While we do focus primarily on restaurant, hospitality, and food & beverage, our franchisees are skilled in many categories, and have made placements in oil & gas, real estate, insurance, healthcare, technology, education, and other industries. If you are looking for your next career, or need top talent, please don’t hesitate to reach out to us today. Or maybe you are wanting to be THAT connector, to provide value, to feel fulfilled in your role, perhaps consider becoming a Patrice & Associates franchise owner. With low investment and low overhead, and a nationwide book of business, now might be the best time to start the next chapter of your life.