RECRUITMENT companies are something of a bellwether for what is happening in the wider economy.

When things are going well and businesses are expanding you can expect to see recruiters flourish.

Equally, when the economy is slowing and business are battening down the hatches you can expect to see them sitting on their hands, not least because anyone who has a job will think more than twice about moving to a new one.

It is for that reason that HR Consultancy’s cautious move back into the Edinburgh market - which it was forced to abandon after its financial services clients stopped hiring during the recession - is a sign not just of the firm’s own returning strength but arguably of the economy’s too.

It is no surprise that technology is one of the main drivers of HR Consultancy’s move, with Scotland in general and Edinburgh more specifically emerging as a centre of excellence - and growth - for the sector.

Like other industries, though, the very thing that is driving the growth of the recruitment sector could also be its biggest threat.

As HR Consultancy’s Hilary Roberts pointed out, the rise of social media has revolutionised the way her business operates, allowing it unprecedented access to the 91 per cent of candidates who didn’t even know they were looking for a job until one was put before them.

But, with technology also able to undertake many of the tasks recruiters have traditionally done themselves, harnessing that and using it in innovative ways is going to be how the winners in the sector differentiate themselves.