THE ABILITY to adapt is key to survival in the modern Irish economy, the National Recruitment Federation's annual conference was told.

The face of recruitment in Ireland is set to change over the coming months, with a move towards jobs in the services industry, an increasing focus on developing a knowledge economy in Ireland, and the use of new technologies such as social networking sites all expected to emerge.

With unemployment figures rising and predictions for slower economic growth affecting the number of candidates seeking new employment, recruitment agencies are facing new and tougher times. They need to change to ensure they keep attracting potential workers.

In March, the live register added an extra 12,000 people, bringing the unemployment rate to 5.5 per cent, the highest since August 1999.

"It's a challenging market for us," says Frank Collins, president of the National Recruitment Federation. With confidence in the economy slipping slightly, people are less likely to move jobs and as such, recruitment agencies may have to offer a number of jobs before tempting candidates away from the safety of their current conditions.

However, with some companies experiencing a recruitment freeze, this has given rise to another potential hurdle for agencies - the counter offer.

"Normal HR practice says not to make a counter-offer," says Collins. "Pay is not the number one reason for leaving. So they may stay, but only for another six to 12 months."

With this in mind though, that extra year may tide companies over until the ban is lifted, he said.

However, it's not all bad news on the recruitment front despite the tightening economic conditions. The headline figures may panic about unemployment increasing, but Collins maintains that there are still plenty of jobs to be had in the Irish economy. He describes the current jump in the live register as a "slight blip".

While the slowdown in the construction industry has caused an increase in the number of people signing on, Collins says some skills used by people in these industries are transferrable to others.

"They just have to be willing to accept a job that wasn't their first choice," he says. "It's the same for any skilled person - there are certain times when your skills are more in demand than others."

Meanwhile, there are other factors to consider.

In the past, employers may have advertised jobs but failed to take people on, using the recruitment process to "trawl for talent".

"The vacancies that are out there are more real and are stronger than in the past," Collins says. "The quality of jobs is better, although there are fewer of them."

To take advantage of this more difficult market, recruitment agencies also need to adapt their approach. This may include using social networking sites to reach potential candidates, where an increasing number of people are spending their time.

The concern over the increasing number of temporary workers may also be somewhat of a red herring.

According to the latest figures from Forfás, the temporary and part-time sector grew by 8 per cent between 1998 and 2007. This compares to a growth of 10 per cent for the permanent full-time sector.

"It's a myth that agency and part-time work isn't as good as full-time," Collins says. "A lot of people choose temporary or part-time work. They don't want nine to five, 52 weeks-a-year jobs. I think it's wrong to say it's an inferior job to permanent positions. An inferior job is a job you don't want."

According to economists speaking at the conference, the Irish economy is expected to keep growing, recording between 3 and 4 per cent growth - compared to a general 2 per cent growth for Europe - thanks to a younger demographic in this country.

This economic growth rate will ultimately filter down into jobs, Collins says.