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Recruiter Randstad says talent still scarce, flags slight slowdown in October

Published 25/10/2022, 07:29
Updated 25/10/2022, 07:30
© Reuters. FILE PHOTO: The logo of personnel service provider Randstad is seen at an office building in Zurich, Switzerland October 2, 2018.  REUTERS/Arnd Wiegmann

© Reuters. FILE PHOTO: The logo of personnel service provider Randstad is seen at an office building in Zurich, Switzerland October 2, 2018. REUTERS/Arnd Wiegmann

(Reuters) - Dutch staffing group Randstad said on Tuesday talent remained scarce in the third quarter, driving a 13% rise in its core earnings, but noted a slight slowdown in hiring since the start of October.

The recruitment industry, which has boomed after coronavirus-induced lockdowns came to an end, is set to face leaner times as companies slow down hiring and expansion plans to brace for a recession.

The number of employees working was down by 1% year-on-year in the third quarter, and in the first two weeks of October there was a "marginal slowdown" compared to last year, Chief Executive Officer Sander van't Noordende told Reuters.

Nevertheless, talent remained scarce with "more jobs than people looking for jobs in quite a few countries" including the United States, Germany and the Netherlands, he said.

The group's underlying earnings before interest, taxes and amortisation (EBITA) reached 336 million euros ($332 million) in the three months to the end of September, compared with 298 million a year earlier.

A poll of 12 analysts provided by the company had forecast an underlying EBITA of 309 million euros on average.

© Reuters. FILE PHOTO: The logo of personnel service provider Randstad is seen at an office building in Zurich, Switzerland October 2, 2018.  REUTERS/Arnd Wiegmann

British peers PageGroup and Hays (LON:HAYS) also flagged slower hiring, notably in the United Kingdom and the United States, in their earnings releases last week.

($1 = 1.0124 euros)

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