Trust me I'm a Banker!

REC and partners Lloyds TSB have today announced the launch of its new Industry Report to March 2008. Sadly they closed the books just before the downturn started to impact on the market but it is none-the-less an invaluable piece of work and it seems quite rosie.

Overall total industry billings (inc. temp salaries) continued to rise and passed £27 billion for the first time ever.

Perhaps more alarmingly, much of the increase came from Perm placements which recorded a significant rise (from £3.5 billion to £4.2 billion). As we all know Perm business is the first to be hit in a downturn and Q3/4 figures for 2008 from the High Street will severely punish this trend. Equally alarming was the decline in Temp placement in the report (1.8% year on year). We desparately need Temp work to hold up if we are to weather the storm.

The biggest single challenge still facing the industry is the continuing decline in margins and let's not forget that guys; as we say at the sharp end, tunover is vanity, profit is sanity and, especially in a downturn, cash is reality.

With the massive reduction in the BoE base rate yesterday, intended to fuel spending in the shops pre-Christmas, let's hope hirers take the bait and spend, spend, spend commercially and don't batten down the hatches for 2009.

Gareth