The COVID19 pandemic induced economic recession has been invariably hard on everyone and has indeed sent tremors to each industry. The staffing industry is among the sectors which had drastic setbacks during the recession. It is evident that there is less scope for recruitments at a time when businesses are reducing their workforce by layoffs and furloughs. It is made clear by several reports stating a drop in the revenue of the staffing firms during the first quarter of 2020.

How the pandemic affected the Staffing firms?

  • COVID-19 Constraints: Like most of the industries, the staffing firms had to shut their offices and implement the work from home. Although a considerable number of recruitments are nowadays made through video conferencing, it can’t be as effective as physical interactions. For an agency that interacts with a lot of people in person every day, hiring through video calls or conferences is a complicated process.
  • Decrease in employment opportunities: As we all know, Businesses of all kinds have been laying off their employees during the recession, which in turn decreases the possibility of hiring fresh candidates. In the event of many people losing their jobs, the scope for new job offers is uncertain. Staffing agencies cannot possibly function and earn as usual when there is no demand for a temporary or permanent workforce.
  • Changing industry norms: The job-oriented market is ruling the staffing industry. Gone are the days when potential candidates had the luxury of choosing the job of their choice. Now, the candidates have to adapt the skills to acquire available jobs.

These are the challenges staffing agencies have been facing during the pandemic.

Way To Recovery:

As the states are reopening, businesses are trying to open up and restore their business operations. It may pave the way for new job positions. The emerging employment opportunities, either for temporary or permanent, is a good sign for the recruitment firms.

The American staffing agency, in its recent report, has mentioned that there has been a steady increase in the recruitment rate. It also states that around 46% of the staffing companies reporting gains in new assignments week-to-week.

Although there were furloughs and layoffs, those are meant to be temporary, and if the economy gains momentum, employment opportunities could arise. For example, even during the pandemic, the E-commerce industry flourished with online sales. So, it opened job opportunities through the logistics and supply sectors. Likewise, there will be a gradual rise in employment.

Meanwhile, staffing companies have to adapt to the evolving times. Eventually, they ought to prepare themselves to get back on track when normalcy hits back.


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