A new report claims that “a band of serial loss makers” in the recruitment agency industry are blaming current market conditions for their
losses when they are actually making losses for the second and even third year running.

The new Plimsoll Industry Analysis — Recruitment Agencies reports that one in five agencies surveyed by the firm is making a loss as the
downturn continues to make life difficult.

Report author David Pattison said: “Increasingly we are seeing companies making a loss for the first time in their history and I think they can
rightly claim they are victims of difficult trading conditions.” However, Pattison added that 83 loss-making companies out of 1,000 assessed were “either blatantly undercutting the rest of the market to enhance or maintain market share” or, more likely, delaying decisions to cut costs, lay off staff and cancel dividend payments. “Those failing to do so are running out of time and cash,” he warned.

“Watch out for a number of failures in the coming months.”