# Adecco sees signs of a hiring slowdown at start of 2023
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-02-28
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Adecco Hiring Activity Weakened Modestly in Early 2023
Meta Description: Adecco, a staffing company, reported a modest weakening in hiring activity at the beginning of 2023. Despite some challenges, the company remains confident in
URL: https://financedigest.com/adecco-sees-signs-of-a-hiring-slowdown-at-start-of-2023html

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By John Revill

ZURICH (Reuters) -Adecco said its hiring activity had weakened modestly at the start of 2023 after the staffing company reported weaker-than-expected earnings during its fourth quarter.

The Swiss company, which provides temporary and permanent workers for industries ranging from manufacturing to tech consultancies and finance, said its revenues had increased by 6% in December, but volume growth had declined in January.

We have seen a slowdown between December and January, but it is modest,” [Chief Financial Officer](https://www.financedigest.com/iris-software-group-names-matt-tuson-as-chief-revenue-officer.html "IRIS Software Group names Matt Tuson as Chief Revenue Officer") Coram Williams told Reuters, declining to give a figure.

The business is still growing…we are [gaining market share](https://www.financedigest.com/bayer-shares-gain-on-prospect-of-second-activist-pushing-for-change.html "Bayer shares gain on prospect of second activist pushing for change"). There is more macro [economic uncertainty](https://www.financedigest.com/combatting-economic-uncertainty-in-2023-with-the-payments-sector-2.html "Combatting economic uncertainty in 2023 with the payments sector") out there, but the talent market is very dynamic.

Adecco [shares traded 2.6% lower](https://www.financedigest.com/britains-next-sees-lower-clothing-inflation-shares-dip-on-cautious-outlook.html "Britain’s Next sees lower clothing inflation, shares dip on cautious outlook") after the results.

The fortunes of Adecco and rivals like Randstad and ManpowerGroup are [seen as a bellwethers for the broader economy as employers brace for a looming recession](https://www.financedigest.com/wall-street-seen-opening-higher-but-u-s-recession-priced-in.html "Wall Street seen opening higher but U.S. recession priced in").

Adecco Chief Executive Denis Machuel said parts of the world were still growing strongly, while others were [scaling back](https://www.financedigest.com/mifid-ii-why-you-should-not-scale-back-your-implementation-efforts.html "MIFID II: WHY YOU SHOULD NOT SCALE BACK YOUR IMPLEMENTATION EFFORTS") hiring.

We [see excellent growth](https://www.financedigest.com/wto-sees-subpar-2023-trade-growth-with-multiple-risks.html "WTO sees “subpar” 2023 trade growth with multiple risks") in Latin America and Asia Pacific, but it’s true there’s been a modest slowdown in Europe and the U.S,” he told Reuters.

We [see growth in some parts of Europe](https://www.financedigest.com/heineken-sees-europe-resilience-offseting-asia-slowdown-risk.html "Heineken sees Europe resilience offseting Asia slowdown risk"), like Switzerland and Germany but slowdowns in some other countries.

Machuel said he expected workers’ [wages to continue](https://www.financedigest.com/volkswagen-strikes-below-inflation-wage-deal-continues-german-trend.html "Volkswagen strikes below-inflation wage deal, continues German trend") to rise this year, because of shortages and imbalances in the labour market.

The talent scarcity is here to last, and that can [fuel wage inflation,”](https://www.financedigest.com/belgian-motorists-beat-fuel-inflation-with-cross-border-trips-to-france.html "Belgian motorists beat fuel inflation with cross-border trips to France") he said.

During the three months to the end of December Adecco’s revenue increased by a reported 13% to 6.2 billion [euros ($6.6 billion), beating the 6.1 billion euros expected in a company gathered](https://www.financedigest.com/euro-zone-recovery-gathers-pace-allays-fears-of-recession-pmi.html "Euro zone recovery gathers pace, allays fears of recession-PMI") consensus of forecasts.

When adjusted for [trading days](https://www.financedigest.com/stocks-fall-treasury-yields-rise-upon-final-2022-trading-day.html "Stocks fall, Treasury yields rise upon final 2022 trading day"), currencies and acquisitions, the increase was 5%.

But net profit fell 65% to 65 [million euros](https://www.financedigest.com/germanys-merck-to-invest-300-million-euros-in-us-gas-plant.html "Germany’s Merck to invest 300 million euros in US gas plant"), missing forecasts as the company expanded its own workforce by 14% to 39,364 people and incurred interest and other expenses.

($1 = 0.9439 euros)

(Reporting by John RevillEditing by Paul Carrel and Keith Weir)


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