With the wave of of redundancies in UK law firms showing signs of intensifying, a small ray of hope comes from US law firms, according to a legal recruiter.
Nick Root, partner at Taylor Root, told Recruiter: “US law firms in London don’t have the vast numbers at UK law firms, and whilst they will be affected by the global slowdown they aren’t making redundancies in the same way.”
The number of company insolvencies rose to 23,879 in 2008, a 30% increase on 2007, according to Experian the global information services company.
Experian’s analysis showed that the rate of business failure increased during the latter half of the year. From October to the end of December 2008, 7,238 businesses failed, a 52% increase compared to Q4 2007, which saw 4,751 failures.
Cuts in bonuses such as those announced yesterday by Alastair Darling for staff at the Royal Bank of Scotland, and bad publicity surrounding the banking industry, are having a major effect on recruitment in the finance sector, say recruiters.
Revenues at international staffing group Randstad declined by 14% in the fourth quarter of 2008, as the company was hit by worsening economic conditions. Revenues fell by 18% in December 2008 compared with 2007.
The company also recorded a fourth quarter net loss of 231m euros (£294m) due to a writedown on its Vedior acquisition.
In a trading statement, Harvey Nash says its second half-year trading was underpinned by the group’s broad portfolio of services and geographic diversity, and that in particular its outsourcing and offshoring business “saw excellent growth”.
War zone: security concerns
IT recruiter FDM group has revealed a 23% rise in 2008 pre-tax profit.
For the year ended 31 December, FDM group recorded a pre-tax profit of £5.3m compared with £4.3m in 2007 as revenue increased 4.7% to £52.2m.
FDM claims its growth was underpinned by its Mountie programme, where it recruits numerical science graduates.
Merseyside-based gangmaster Cartwright Employment lost its appeal against the Gangmasters Licensing Authority (GLA), after its licence was revoked.
James Caan
