Recruiter Michael Page warns on profit

The recruiter was hit by a slowdown in the Europe, Middle East and Africa - its largest region, representing almost 40 per cent of the group - which posted a 16 per cent fall in profit for the third quarter.

Group gross profit for the three months to end-September was £126.5m, 11 per cent down on a year ago.

A rapidly shrinking financial sector, formerly a lucrative source of fees for recruiters, and a deteriorating outlook for the global economy have led to a slowdown in recruitment as companies delay hiring decisions and workers are more cautious about changing jobs.

“We do anticipate another challenging fourth quarter, with economic conditions and market confidence likely to remain poor for the foreseeable future,” chief executive Steve Ingham said in a statement today.

Financial services represents over 40 per cent of the group’s profit, while more than three quarters of its profit derive from placing people in permanent jobs, which, compared with temporary placements, has taken a bigger hit in the global economic slowdown as companies put off making longer term decisions.

Fellow hiring agency Robert Walters posted a 1 per cent rise in gross profit on Thursday, also held back by the slowdown in financial services hiring.