Robert Half leaves Ireland, but are FS recruiters still feeling the squeeze?

Robert Half, the international recruitment firm, has taken the "difficult decision" to close its Irish operation. Is this a sign that hard times will continue for financial services recruitment, or is the company the exception rather than the rule currently?

The financial services recruitment firm has confirmed that its Dublin office ceased operations two weeks ago. The move affects five staff in the Irish capital, who have been supported by "severance pay, career consulting and possible job placement where appropriate", according to a company spokesperson.

"The business has not performed as we hoped, despite the best efforts of the team in Dublin," said a Robert Half spokesperson. "The business climate has not been conducive to support growth. After facing these challenges for a number of years, we can no longer justify keeping these operations open."

Robert Half is by no means alone in its decision to shut up shop in Ireland. According to information from the National Recruitment Federation (NFR) in Ireland, there were 650 licensed recruitment firms in 2007 - the height of the Celtic Tiger boom - and the latest available figures show this has now shrunk to 393.

"The last two years have been disastrous for recruitment firms in Ireland, particularly those with a financial services focus," says Frank Collins, NRF president. "However, we find Robert Half's strategic decision to leave Ireland now surprising, as indications we're getting from our members is that job roles are increasing again."

Another high profile exit early on in the financial crisis was Joslin Rowe, which closed its Irish office in June 2008. As well as declining business volumes, the firm cited prohibitive operating costs - in particular high office rent - which is also understood be a factor in Robert Half's decision to leave Ireland.

Nonetheless, Collins remains convinced that the picture is beginning to look decidedly rosier for recruitment firms in Ireland.

"We've had recent consultations with over 50 recruitment companies and the general consensus was one of positivity," he says. "They are no longer talking about survival, but are looking at growth again and are hiring more recruitment consultants because they've downsized so much over the last two years."

Robert Half has also closed its Madrid office. However, the firm says that the decision was taken only in respect of single countries and its other staffing operations around the world remain unaffected.