Recruitment firm SThree reported that the jobs market was “challenging” in the first couple of months of 2024 as hiring activity in the tech industry remained muted.
Net fees at the STEM-focused recruitment company were down six per cent in the three months to February, driven by “continued softness” in new business for both permanent and contracted roles.
Demand in life sciences and the tech sector continued to “reflect market conditions,” SThree said.
2023 was a brutal year for the tech industry with hundreds of thousands of workers across some of the world’s biggest companies losing their jobs. This year has been no different, with some reports suggesting layoffs have accelerated in the first quarter.
However, there was strong demand for engineering roles, driven largely by the renewable energy sector.
Sharp falls in activity in the tech sector contributed to lower fees in the US and Germany, while Japan saw an “exceptional performance”.
The contractual order book was down only one per cent year-on-year to £184m, which SThree said represented “sector-leading visibility”.
The contractor order book represents value of net fees until contractual end dates, assuming all contractual hours are worked.
The firm’s headcount for the quarter was down 12 per cent year-on-year.
Chief executive Timo Lehne commented: “We have delivered a good performance against a strong comparative and within a market environment that remains difficult from a new business perspective”.
“Whilst we look forward to the easing of the macro environment, our strategic focus, exposure to long-term megatrends, and progress to date delivering operational enhancements provide us with a resilient and financially robust foundation with the capacity and improved capabilities to deliver our ambitions and future growth”.
It said performance for 2024 is expected to be in line with market expectations.