Companies are putting off hiring senior staff and potential job candidates are staying put because of uncertainty over Brexit, one of Britain’s leading recruitment companies has said.
Page Group’s overall first-half pre-tax profit rose 18.1% to £67.2m. But gross profit at the company’s Michael Page arm, which deals with more senior jobs, fell 7% in the UK.
Page Group said: “Brexit-related uncertainty [has continued] to impact decision-making from clients and candidates at the more senior levels of the market.”
Michael Page recruits accountants, IT heads, finance directors and other senior people in industries ranging from financial services to manufacturing and healthcare.
The stagnant market for senior recruitment appears to reflect wider business uncertainty as the March deadline for leaving the EU looms with no deal in sight. Recent surveys showed most companies expecting business to decline in the next year despite strong growth in the global economy.
Across Page Group’s business as a whole, revenue increased 11.7% to £751.6m. Gross profit rose 12.5% to £396m.
The global recruitment company’s revenue and profit rose in all regions except the UK where revenue fell 3.5% to £155m and gross profit dropped 4.6% to £69.7m.
Business for temporary jobs increased in the six months to the end of June.
Page Group’s results showed a stark contrast between the recruitment markets in the UK and the rest of the world. In Europe, the Middle East and Africa, which makes up almost half the group, revenue rose 20.3% to £194.9m. Revenue rose 11.1% in Asia Pacific and 14.2% in the Americas.
The company, which started in 1976 above a London laundrette, pointed out the UK now makes up only 18% of group profit. It said the UK was a resilient market due to its size and maturity.
Page Group shares rose 0.4% to 601.5p in early trading.
