Waiting times are making workers ‘more reluctant’ to accept job offers, says recruiter Page Group

Revenue increased 5.8 per cent to just over £1bn in the six months to the end of June. But pre-tax profit was down by nearly 45 per cent to £63.3m.

Page said that there had been “some reluctance to accept offers” among the people on its books.

“The challenging conditions we saw towards the end of 2022 continued into the first half of 2023, with lower levels of both candidate and client confidence resulting in delays in decision making and candidates being more reluctant to accept offers,” said chief executive Nicholas Kirk.

“Reflecting the uncertain macro-economic conditions, temporary recruitment outperformed permanent, as clients sought more flexible options.”

The group said that gross profit from its permanent hires had reduced by 7.1 per cent to £392.2m, but the temporary part of the business saw a 15.3per cent rise to £134.6m.

Gross profit in the Europe, Middle East and Africa (EMEA) areas – which makes up 55 per cent of Page Group’s total – was up 8.1 per cent.

The company reported a deterioration in its performances in the Americas (down 5.5 per cent), Asia-Pacific (down 18.3 per cent) and the UK (down 13.2 per cent).

Mr Kirk added: “Looking forward, there remains a high level of global macro-economic and political uncertainty in the majority of our markets. “However, against this backdrop, we continue to see candidate shortages and good levels of vacancies, as well as continued high fee rates.

"We are also seeing the benefits from our investments in innovation and technology. We have a highly diversified and adaptable business model, a strong balance sheet, and our cost base is under continuous review and can be adjusted rapidly to match market conditions.

"Given these fundamental strengths, we believe we will continue to perform well despite the uncertainty. At this stage of the year, the board expects 2023 operating profit to be in line with our previous guidance.”

Earlier this week, the Recruitment and Employment Confederation (REC) reported a fall in permanent staff appointments, which it said was due to a weaker economic climate and reduced market confidence.

A survey of 400 recruitment agencies found permanent staff appointments fell at the steepest pace for three years.

There were frequent reports of redundancies and hiring freezes, while competition for skilled workers and the increased cost of living continued to place upward pressure on rates of starting pay during July, the REC found.

Chief executive Neil Carberry said: “The jobs market overall remains fairly robust, with vacancies and pay still rising and unemployment low, but there is a sense in today’s report that the economy will need some growth soon to sustain this positive picture."