City recruiter PageGroup PLC (LSE:PAGE)’s second-quarter earnings print underscored the dour market conditions of Britain’s tight labour market.
Gross profit in the second quarter declined 12% year on year and management warned of “no immediate signs of improvement”.
“As clients' recruitment budgets have tightened, they have become more risk averse which has slowed the recruitment process.
“Although salary levels remain strong, offers made to candidates were not as elevated as they were in 2022 and early 2023.”
PageGroup gave a full-year operating profit forecast of £60 million, which is nearly half of the previous full-year result.
Temporary recruitment performed comparatively better in the second quarter (falling 9.8% against permanent’s 12.8%), “s clients seek more flexible options and permanent candidates remain reluctant to move jobs”.
PageGroup shares were tossed nearly 6% lower following publication of these results.