Recruiter Pagegroup has reported no improvement in macroeconomic conditions despite the usual pick-up in the market around this time, with the crisis in recruitment still ongoing.
The FTSE-listed company told markets this morning that profit fell by 13.5 per cent in the third quarter of the year, to £201.4m.
The slowdown was most marked in Europe, with profit down 19 per cent in Germany and 16 per cent in France.
In the UK, gross profit for the third quarter declined 13.5 per cent against 2023 to £26.2m, following the fall of 17.4 per cent in the second quarter.
Nicholas Kirk, chief executive of Pagegroup, said: “We continued to see challenging market conditions throughout the group in the third quarter, with no improvement in September after the seasonally quieter summer months.
“The ongoing macro-economic uncertainty in the majority of our markets continues to impact candidate and client confidence negatively.
The recruitment market has been in crisis mode for multiple years, with cost-cutting across industries, caution over hiring from firms, and potential candidates’ reluctance to move job hitting firms hard.
However, things are expected to pick back up again next year: Mintel has predicted a more rapid return to growth in 2025 amid a more positive macroeconomic climate. If the UK’s economy continues to pick up speed—as is hoped—business confidence should boost hiring.
In the meantime, Pagegroup “continued to review” its headcount and reduced its fee earner headcount by 98, or 1.8 per cent during the third quarter, mainly in Europe.
Around 350 jobs have been cut since January, leaving the total headcount at 5,500 down from a high of just over 7,000 in September 2022.
Kirk added: “We have a highly diversified and adaptable business model, a highly experienced management team, a strong balance sheet and our cost base is under continuous review.
“Given the group’s fundamental strengths, we believe we will continue to perform well despite the challenging environment, and we are confident in our ability to implement our strategy, driving the long-term profitability of the Group.”