So where does the recruitment industry find itself in the economic climate. Well experts are saying that companies should use job boards, websites and online recruitment companies to find new candidates. Managing Director of the IT job board, Alex Farrell thinks that online recruitment services should look to take advantage of the situations businesses are in.

Many companies will be looking to make savings and cut costs and recruitment will be one of the areas thought to be hit. Businesses are expected to use online services as they tend to be cheaper than traditional recruitment companies.

Mr Farrell also noted “Job boards are one of the most cost effective methods of recruiting, especially in comparison with the traditional media and recruitment agencies.”

But a lot of recruitment companies are said to be confident in the current market, but is this the case for 2009. Human capital consulting firm, Watson Wyatt has warned there maybe recruitment freezes in the New Year. Companies are expected to slow down recruitment and use restructuring within the business to help with the tough financial climates.

But one good thing is that according to a study of HR practitioners in the financial services industry, pay cuts or freezes are not to be expected. This is some slight good news considering unemployment figures have reached a 10 year high with numbers of people out of work expected to hit 2 million in January.

As well as company restructures, businesses taking part in the survey stated they will also try to cut costs with freezing hiring, restricting company travel, restructuring HR departments and reducing training courses.

No one knows exactly what will happen to recruitment for banking jobs and jobs in finance in the New Year. But hopefully things will have settled down this time next year.