Pagegroup: Recruiter cuts headcount as hiring slump spurs profit slide
Recruitment agency Pagegroup reported a slide in group profit in the first quarter of the year due to businesses holding off hiring amid a tough economic climate.
The FTSE 250 firm said the figure dropped by 12.8 per cent to £219m. Its fee earner headcount was also down by 100 on last year’s figures to 5,751.
In line with these conditions, the company has reduced its fee earner headcount by 1.7 per cent. This follows quarterly headcount reductions since the peak of 7,071 reached at the end of Q3 2022.
Nicholas Kirk, chief executive officer, Pagegroup, told markets this morning the business experienced “a slight deterioration in job flow towards the end of the quarter”.
“Conversion of final interviews to accepted offers is still the most significant challenge, as candidate and client sentiment remains subdued reflecting the general macro-economic uncertainty in most of our markets.”
He added: “Permanent recruitment was more impacted than temporary across all of our markets, as clients continue to seek more flexible options.”
Earnings year-on-year were down across the board with the UK and Asia being the worst hit, recording a 19.2 per cent and 22 per cent decrease respectively.
Kirk said that trading conditions in Asia, the UK and the US saw “no improvement” with low levels of client and candidate confidence continuing to delay time to hire, particularly in permanent recruitment.
“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.”