Newspaper article The Journal (Newcastle, England)

Shortage of Jobs Hits NRG; in Association with RBS

Newspaper article The Journal (Newcastle, England)

Shortage of Jobs Hits NRG; in Association with RBS

Article excerpt

Byline: Christopher Knox

APROMINENT North East recruitment firm said it remained upbeat despite suffering from a shortfall in new vacancies as companies continue to tighten their belts in light of the credit crunch.

New figures from Newcastle-based Northern Recruitment Group (NRG) show it has been hit by the current economic conditions, with its annual turnover dropping from pounds 22.3m to pounds 19.9m.

The firm also saw its pre-tax profits fall from pounds 2m to pounds 1.2m for the year up to the end of June, as the market for temporary staff dried up.

While its permanent recruitment activities were maintained, its temp business was down by 4.3% as a result of worsening sentiment among emplo yers.

A survey by employment group Manpower revealed most of the 2,100 UK bosses it sampled were putting recruitment plans on hold.

Yesterday NRG said it had seen a decline at its NRG Connect handling unit on Grey Street, Newcastle, which takes on large-scale projects, including recruiting hundreds or thousands of people for the private and public sector.

The group admitted that it had witnessed a "dearth" of such projects.

Chief executive Lorna Moran, said: "As with the UK economy as a whole, the recruitment sector seems unlikely to show much growth in the short term.

"NRG has been in business for more than 30 years and has considerable experience of weathering conditions successfully. Our business model, with its emphasis on customer service and tight financial control, is ideally suited to the current climate.

"These fundamental strengths give us confidence in the ability of our highly resourceful team to take the business forward."

Ms Moran went on to say that there were beacons of light in the North East recruitment sector with the strength of the oil and gas and engineering sectors leading to a growth of its business on Teesside. …

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