PageGroup, the leading recruitment company in the U.K., has revised its profit guidance for 2023 due to challenging market conditions in Asia, the U.K., and the U.S. This downgrade comes as the company faces a drop in gross profit during the third quarter.
PageGroup now expects its operating profit for 2023 to range between £125 million and £130 million, excluding a one-off cost of approximately £5 million. This revised forecast is lower than the company’s previous guidance, which aimed to meet the consensus expectations figure of £137.6 million.
According to PageGroup, Asia, the U.K., and the U.S. have experienced performance setbacks due to difficult market conditions. However, Europe, the Middle East, and Africa have shown resilience and remained the best-performing region.
In the third quarter, temporary recruitment showed strong growth, with a 5.8% increase. In contrast, permanent recruitment experienced a decline of 12.1%. The company attributes this decline to candidate shortages and reduced candidate confidence.
Impact on Salary Levels
PageGroup notes that salary levels have remained elevated, but the salary increases offered to candidates have decreased compared to the third quarter of 2022. This, combined with lower candidate confidence, has led to an increase in rejected job offers.
While these challenges persist, PageGroup remains determined to overcome market conditions and strive for success.