12th February 2023

Cost of living and the impact on the recruitment industry


Monetary policy to control inflation is ‘tough love’

The sustained increase in the general price level of goods and services in economies around the world has significantly reduced the purchasing power of money, forcing the cost of living up to unmanageable levels for many. 

As the cost of living crisis continues to rumble on, governments are seemingly powerless to act, except by taking action through monetary policy in an attempt to address the driver of the crisis, inflation. But these measures take time to have an effect and for many, it equates to little more than ‘tough love’.

With no quick end in sight to the current period of disruption, market uncertainty and volatility, concerns are growing among businesses. The precise effect that a sustained cost of living crisis is going to have on the recruitment industry is difficult to predict. 

However, it’s likely that as businesses which outsource hiring services adapt to reduced revenues and perhaps come under financial stress, it will impact their hiring policies. As the crisis continues to deepen in economies around the world, here we look at some potential areas of focus.

6 impacts of the cost of living crisis on recruitment 

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