Demand for recruitment consultants is down on previous years, because fewer businesses are using their services. However, there are still opportunities in some areas, due to high turnover in the job.

Recession means businesses cutting back on their use of recruitment services

Job opportunities for recruitment consultants have been falling because of the current economic recession. Companies that normally employ external recruitment consultants to hire workers are having to cut back on costs. Many are hiring in-house, instead of getting help from external recruitment consultants.

Also, businesses often prefer to hire temporary staff and contractors during recessions. Some recruitment companies specialising in permanent placements closed down in early 2009, because they struggled to place candidates.

Fewer vacancies for recruitment consultants to work with

Job listings in general are down on previous years, meaning there are fewer vacancies for recruitment consultants to put their clients forward for. Recruitment consultants who specialise in areas that have been hit hardest by the recession, such as marketing and  construction, are finding things particularly difficult.

Competition for jobs is also higher, which makes it harder for consultants to place candidates. This affects recruitment consultants' commission and sales, as most of their income is generated by placing candidates with an employer.

High turnover of recruitment consultants creates opportunities

Turnover among recruitment consultants is high. Because the job is focused on placing candidates, the stress of meeting these targets means many consultants burn out after 12 to 18 months in the position. After this, it's common for them to leave the job in search of other work. This creates opportunities for others to enter the job.

Recruitment consultants work for a range of agencies, some of which are privately and independently owned. Others are run as franchises across New Zealand. Some recruitment consultants set up their own businesses and work for themselves or run their businesses online.

Recruitment agencies may recruit across a range of roles, or may specialise in particular markets and industries such as:

• information technology (IT)
• health
• government
• clerical and administration
• building and construction
• hospitality
• law.

Many smaller recruitment companies recruit for positions only within a certain region, city or town.

Many recruitment jobs are found in the major centres, where demand is greatest because of population. In 2009, the New Zealand Yellow Pages listed 1,211 recruitment agencies in its directory throughout New Zealand – 755 in Auckland, 300 in Wellington and 279 in Christchurch.

Most regional towns and cities also have recruitment agencies.