Cautious employers are delaying hiring decisions and workers are nervous to accept offers as economic uncertainty hits the jobs market, global recruiter PageGroup showed as it posted a fall in profits.
The FTSE 250 company which works with sectors such a tech, finance and marketing also saw temporary recruitment outperform permanent in the second quarter, “as clients sought more flexible options”.
Group gross profit was £263.5 million, 6.5% lower than a year earlier when PageGroup had a record performance.
In the UK it recorded a 17% tumble to £32.5 million, following a decline of 9.4% in the prior quarter.
Chief executive Nicholas Kirk said tough market conditions affected performances in Asia, UK and the US.
The firm, which is behind brands such as Michael Page and Page Personnel, last issued a earnings warning in January in relation to last year’s results. It joins rivals in pointing to the recruitment market slowing after two years of bumper demand when firms expanded or started to re-build teams post-pandemic.
In June Robert Walters warned on full-year profits in an update that sent shares in the sector tumbling. Then Robert Walters last week said second quarter net fee income dropped 10% with “global market uncertainty continuing to impact both candidate and client confidence”.
The ONS yesterday said that unemployment rose to 4% in the three months to May, from 3.8% in the previous quarter.
PageGroup’s Kirk said: “Looking forward, there remains a high level of global macro-economic and political uncertainty in the majority of our markets. However, against this backdrop, we continue to see candidate shortages and good levels of vacancies, as well as continued high fee rates.”
PageGroup expects 2023 operating profit to be in line with the company compiled consensus of £137.6 million.
