In response to the rise in unemployment figures released from the Office of National Statistics (ONS), Edward Winterton, Bibby Financial Services recruitment finance specialist said:
“It’s disappointing to see that the level of unemployment across the UK is on the rise, with latest ONS figures showing the number of people out of work reached 2.47 million in April - an increase of 23,000 over the quarter.
“These figures reflect the lag effect the recession is having on jobs, with factors such as the rising levels of business insolvency in Q1 of this year and further redundancies adding to the rise in unemployment.
“In addition to these issues, public sector cuts are going to have a huge effect on the recovery of unemployment levels making competition for candidates and clients fiercer among recruitment agencies. Once again, the spotlight is on the survival of the sector and individual businesses in a difficult market place.
“Preparation for another tough spell is everything. Recruiters need to start thinking about their financial strategy and cash flow management up to the end of the year and even beyond to ensure they are giving themselves the best possible chance to cope with more challenges coming their way this year. A healthy flow of funds now may make sure that they do not hit cash flow difficulties later on.
“Alternative cash flow funding solutions, such as invoice finance, can enable recruitment firms to do this by providing an immediate injection of cash into the business against the value of outstanding customer invoices. This access to finance enables recruitment bosses to meet any unexpected demands that come their way and provide their business with the opportunity to move forward.”
