PageGroup PLC (LSE:PAGE) continued to feel the impact of subdued levels of hiring activity and employer confidence in the third quarter.
The FTSE 250-listed company's gross profit for the quarter fell by 13.5% to £201.4 million compared to the same period in 2023.
September, which is typically a ‘rebound’ month following the seasonally quieter summer months, ended 16% below last year.
Permanent recruitment in the third quarter took the largest hit, down 15.3%.
Temporary recruitment saw a relatively smaller decline of 8.6%, indicating that employers are opting for more flexible hiring options amid ongoing macroeconomic uncertainties.
Chief executive Nicholas Kirk stated: “The conversion of interviews to accepted offers remains the most significant area of challenge as the ongoing macroeconomic uncertainty in the majority of our markets continues to impact candidate and client confidence negatively.
“In this context, permanent recruitment continues to be impacted more than temporary.”
Gross profit in the UK fell 13.5%, while Asia Pacific was the worst-performing market with a 16.8% decline.
Fellow mid-cap recruiter Hays PLC (LSE:HAS) posted similarly dreary results last week.
Kirk stated that the conversion of interviews to accepted offers continues to be a key challenge, with the ongoing economic uncertainty weighing on decision-making processes.
The company reduced its headcount by 1.8% in the third quarter, with 98 fewer employees, mainly in Europe. Despite the decline in gross profit, PageGroup ended the quarter with a net cash position of £93 million, up from £57 million in the previous quarter.