Updated February 29th, 2024 at 14:25 IST

Adecco posts strong fourth quarter performance amid weaker hiring trend to start 2024

This trend reflects the challenging market conditions where workers are hesitant to switch jobs due to economic uncertainties.

Reported by: Business Desk
Adecco staffing solutions | Image:Adecco
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Adecco staffing solutions: Staffing and training company Adecco on Thursday, February 29, announced better-than-expected fourth-quarter operating profit, driven by robust hiring in southern Europe, Germany, and Latin America. However, the company noted a weaker hiring trend at the beginning of 2024.

Despite a 1 per cent increase in sales volumes for the three months ending December, Adecco reported that year-to-date sales were "marginally below Q4 2023 levels." This trend reflects the challenging market conditions where workers are hesitant to switch jobs due to economic uncertainties, resulting in smaller salary increases offered by employers.

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Denis Machuel, Chief Executive of Adecco, highlighted the prevailing uncertainties in the macroeconomic and geopolitical landscape, stating, "There is a moment of uncertainty at present, and a little bit of a decline." However, he expressed confidence in Adecco's ability to navigate these uncertainties, particularly through providing flexible workforce solutions and focusing on gaining market share in the staffing sector.

Despite the broader economic uncertainties, Adecco reported a strong operating income of €187 million for the fourth quarter, surpassing analyst expectations of €151 million. However, net profit, which increased by 6 per cent to €68 million, fell short of forecasts due to a higher tax bill.

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During the quarter, Adecco observed robust hiring activity in Germany, Italy, Spain, Portugal, and Latin America. However, the rest of Europe, particularly France, experienced slower hiring trends, while the United States showed moderate performance.

Machuel emphasised the diverse landscape across regions and sectors, with strong performance in automotive supporting growth in Germany. Looking ahead, he noted the absence of a base case scenario for the year and highlighted the need for agility in managing the business amid ongoing uncertainties.

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(With Reuters inputs.)
 

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Published February 29th, 2024 at 14:25 IST