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Recruiter PageGroup has revealed ongoing trading woes after the global jobs market failed to rebound as hoped in September following the quieter summer months.
Page said gross profits tumbled 16.7% to £201.4 million in the third quarter, down 13.5% on a constant currency basis.
It said September – a traditionally busier month following the summer holidays – remained under pressure, with gross profits down 16% last month.
The group cut its fee-earner workforce further, down by another 1.8%, or 98 roles, to 5,500 as it continues to right-size to match the weaker market conditions.
This follows a 2.7% reduction in roles in the previous three months, with the group having shed more than 1,000 fee-earner jobs in 2023.
Conversion of interviews to accepted offers remains the most significant challenge due to reduced levels of client and candidate confidence
PageGroup
Page said: “We saw no improvement in market conditions in September, which is a key month after the seasonally quieter summer holiday period.
“Conversion of interviews to accepted offers remains the most significant challenge due to reduced levels of client and candidate confidence.”
But the firm held off from any further profit warning, saying 2024 earnings are set to be “broadly” in line with expectations.
It warned over profits in July after weaker-than-expected trading in June, which has seen expectations for annual operating profits slashed to £58 million – less than half the £118.8 million reported for 2023.
Recruiters are having a torrid time amid a weakened global jobs market, with rival Hays last week also reporting a 20% drop in third-quarter UK fees and further role reductions in its workforce.
PageGroup said UK gross profits – which accounts for around 13% of overall group fees – dropped 13.5% to £26.2 million in the third quarter, a slight improvement on the 17.4% decline seen in the second quarter.
It saw a “more resilient” performance in temporary recruitment, down 8%, with a 16% fall for permanent recruitment, which it said was “reflective of market conditions”.
Chief executive Nicholas Kirk said: “Whilst most markets were sequentially stable, we experienced softer activity and trading in a number of European countries including France and Germany.
“The conversion of interviews to accepted offers remains the most significant area of challenge as the ongoing macro-economic uncertainty in the majority of our markets continues to impact candidate and client confidence negatively.”
He added: “We continue to review fee earner headcount, reallocating resource in line with our strategy into the areas of the business where we see the most significant long-term structural opportunities.”
