Recruitment giant PageGroup has flagged tariff uncertainty weighing on the jobs market as it revealed further trading woes and axed more roles to save costs.
The firm saw gross profit drop 13.1% in the second quarter – down 10.5% with currency movements stripped out – despite a slight recovery in the US and Asia.
In the UK, gross profit tumbled 14.3% to £23 million, while trading worsened in France and Germany, down 20% and 21% respectively.
PageGroup cut its workforce by nearly another 200 in the second quarter as it looked to offset the difficult market, with its fee earning team reduced by 133 or 2.5% to 5,163.
The group also cut 61 back office roles in the quarter.
But shares lifted 3% in morning trading as the fall was not as bad as many in the City feared, while PageGroup said it was “broadly” on track with annual profit forecasts.
Nicholas Kirk, chief executive of PageGroup, said the results came against a backdrop of “ongoing market and tariff-related uncertainty, with mixed results across the group”.
He added: “The conversion of accepted offers to placements remained the most significant area of challenge, as ongoing macroeconomic uncertainty continued to impact confidence, which extended time to hire.
“Permanent recruitment continued to be impacted more than temporary, as clients sought flexible options and permanent candidates remained reluctant to move jobs.”
PageGroup said the UK market remained “tough but stable, having delivered a similar growth rate as the previous three quarters”.
Time to hire in the UK was being held back by “ongoing subdued levels of client and candidate confidence”, according to the group.
It cut 56 roles in its UK operation between April and June.
PageGroup said overall in the first half, gross profits fell 12.3% or 9.7% on a constant currency basis.
It is forecasting full-year operating profit to more than halve, to around £22 million from £52.4 million in 2024.
