PageGroup PLC (LSE:PAGE) followed industry rival Robert Walters PLC in warning of a dip in hiring towards the end of 2022 as the economic slowdown looks set to finally bite into the labour market.
“As the quarter progressed, conditions became increasingly challenging and we saw a reduction in both candidate and client confidence, leading to further delays in decision making, as well as candidates being more reluctant to accept offers” the international recruiter said.
As a result gross profit per fee earner declined 12% compared to quarter four 2021 meaning the company now expects 2022 full year operating profit to be around £195mln.
On the bright side the company reported vacancy levels remain good and candidates are still in short supply.
In Asia Pacific, gross profit for the quarter was down 15.8% against 2021 to £43.0mln with permanent recruitment sliding 19% while temporary recruitment grew 5%, reflecting the uncertain market conditions. Greater China declined 41%, with Mainland China down 52%.
Looking specifically at the UK and Page said gross profit for quarter four fell 1.9% against 2021 to £35.7mln with growth slowing from a rise of 9.5% in quarter three.
Reflecting the more challenging trading conditions, our fee earner headcount reduced by 26 in the quarter.
The update came a day after the warning from Robert Walters and a downbeat survey on hiring intentions from the industry watchdog, the Recruitment and Employment Confederation and KPMG.
Shares in PageGroup PLC proved resilient today, up 2%, after falling yesterday.