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The company said it cut an additional 1.7% of its workforce in the first quarter, equivalent to about 100 positions.
Recruitment firm PageGroup has revealed more deal woes and additional job cuts as the global jobs market continues to face pressure into early 2024.
The group’s gross profit fell by 12.8% in the first quarter of this year, down 18% in March alone, and by 8.9% in the fourth quarter of 2023. In the first quarter, it increased by 1.7%, equivalent to about 100 positions.
After cutting more than 1,000 jobs last year, PageGroup now plans to keep its fee-based headcount mostly at current levels. At the end of the first quarter, the organization claimed that workflow had “slightly deteriorated,” with candidates becoming more hesitant to accept job offers and companies delaying hiring decisions due to economic uncertainty.
In the UK, the company’s gross profit fell sharply by 19.2% to £27.1 million, following a 19.9% decline in the final three months of 2023. The situation continues until the first quarter of 2024, especially in continental Europe.
He added: “Overall, activity levels remained strong, but towards the end of the quarter our workflow deteriorated slightly. Converting final interviews into accepted offers remains the most significant challenge, as both candidates and clients Sentiment remains subdued, reflecting the prevailing macroeconomic uncertainty across most of our markets.
PageGroup reported that long-term hiring fell 15% and 7% across all markets across the group in the first quarter, with companies seeking more flexible options amid uncertainty. The company revealed that trading conditions had not improved in the UK, Asia or the US, which accounts for 12% of the group’s gross profit.
Global hiring has taken a hit over the past year due to weak economic conditions. Last month, PageGroup reported a sharp 39.6% drop in pre-tax profit for 2023, with gross profit falling 6.3% at constant exchange rates.
The company also noted that wage growth has slowed from high levels in 2022 and early 2023. arrange.
“Against this backdrop, activity levels remain good and nearly all of our markets continue to face significant shortages of highly skilled candidates, which supports continued high charge rates,” it said.
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