As the Conservative party conference convened in Birmingham today David Morel, director of Tiger Recruitment, called on the government to offer SMEs a reprieve until the market returns to normality.
He said: “Over the past 12 months, the recruitment market has suffered as a result of a lack of confidence among employers, small businesses feel exposed and underfunded.
“The Euro crisis is by a distance the single biggest contributory factor. Too many businesses are too scared to take on full-time staff.”
The call comes as global recruitment firm Michael Page International issued poorer than expected results.
Its 2012 quarter three gross profits of £126.5m are 8.3% lower than the previous quarter and 11.3% down on the same quarter last year.
Morel added: “The permanent jobs market was pummelled over the summer, specifically by the Olympics. Both businesses and applicants went off the radar however things have picked up since mid-September but the permanent jobs market is still very much on the back foot.
“In the UK, we expect to see a slow, gradual pick-up in the wider recruitment market in the months ahead but expect progress to be volatile.”