# Recruiter Randstad beats Q1 earnings estimates despite hiring slowdown
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-04-25
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Recruiter Randstad Q1 Earnings Beat Estimates Amid Hiring
Meta Description: Discover how Randstad exceeded Q1 earnings expectations despite a hiring slowdown, offering insights into the economic landscape and market trends.
URL: https://financedigest.com/recruiter-randstad-beats-q1-earnings-estimates-despite-hiring-slowdownhtml

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# Recruiter Randstad beats Q1 earnings estimates despite hiring slowdown

By Romolo Tosiani

(Reuters) -Dutch recruitment firm Randstad reported better-than-expected first-quarter core earnings on Tuesday, despite a slowdown in hiring by companies.

The performance of staffing firms is seen as a bellwether for broader economic activity as companies’ appetite for hiring indicates confidence in the economy.

“So it’s less hiring but still good activity,” CEO Sander van ‘t Noordende told Reuters.

Van ‘t Noordende added the [company saw a good performance in permanent employment in Europe](https://www.financedigest.com/citnow-bursts-into-ft1000-of-europes-fastest-growing-companies.html "CitNOW bursts into FT1000 of Europe’s Fastest-Growing Companies") but also in the U.S., despite that business being down it’s still at a [level that is beyond pre-pandemic.”](https://www.financedigest.com/marstons-says-q4-sales-above-pre-pandemic-levels.html "Marston’s says Q4 sales above pre-pandemic levels")

The group’s underlying earnings before interest, taxes and amortisation (EBITA) were down 9% at 266 [million euros](https://www.financedigest.com/sp-global-fined-1-1-million-euros-for-premature-credit-rating-publications.html "S&P Global fined 1.1 million euros for premature credit rating publications") ($293.90 million), but above the 260 million euros forecast in a company-compiled consensus.

The “macro economic environment [remained challenging across our markets](https://www.financedigest.com/flooded-battery-to-remain-top-choice-across-industries-accounting-for-49-0-of-lead-acid-battery-sales-in-2021-future-market-insights.html "Flooded Battery to Remain Top Choice across Industries, Accounting for 49.0% of Lead Acid Battery Sales in 2021: Future Market Insights"), which translated into lower hiring activities from our clients,” the firm said, adding that this trend continued into early-April.

Jefferies said in a note that organic [revenue estimates could move down as comments on April, suggest a 5-6% organic revenue growth](https://www.financedigest.com/inflated-adoption-of-biosensor-market-to-fuel-revenue-growth-during-2014-to-2020.html "Inflated Adoption of Biosensor Market to Fuel Revenue Growth During 2014 to 2020") decline in the second quarter, below consensus for a 4% decline.

The stock was down 2.4% by 0706 GMT.

The company said organic revenue per [working day](https://www.financedigest.com/no-more-five-working-days-how-getting-paid-immediately-can-transform-black-friday-for-merchants.html "No more ‘five working days’ – how getting paid immediately can transform Black Friday for merchants") declined by 4.2%, with North America down 10%, while Northern Europe slipped 6%. The [Asia Pacific region](https://www.financedigest.com/increase-yield-are-expected-to-drive-market-of-24-dichlorophenoxyacetic-acid-in-asia-pacific-region.html "Increase Yield Are Expected To Drive Market Of 2,4-dichlorophenoxyacetic Acid In Asia Pacific Region") was a bright spot with revenue up 4%.

Weakness in North America was mainly driven by an overall softening of demand in sectors such as manufacturing, transportation and distribution, along with administrative roles, [Chief Financial Officer](https://www.financedigest.com/deutsche-bank-names-eigendorf-new-chief-sustainability-officer.html "Deutsche Bank names Eigendorf new chief sustainability officer") Jorge Vazquez told Reuters.

Peers PageGroup and Hays flagged slower hiring due to weakness in the permanent recruitment market as employers were turning to interim hires to ride out market uncertainty amid a tough [economic outlook](https://www.financedigest.com/credit-squeeze-biggest-threat-to-economic-outlook-fidelity-international-says.html "Credit squeeze ‘biggest threat’ to economic outlook, Fidelity International says").

The economy is not in a recession, it’s not in great shape either,” Van ‘t Noordende said, adding the key question is whether the [central banks](https://www.financedigest.com/climate-change-fight-a-core-duty-for-central-banks-ecbs-villeroy.html "Climate change fight a ‘core duty’ for central banks – ECB’s Villeroy") will continue to raise interest rates.

($1 = 0.9051 euros)

(Reporting by Romolo Tosiani; Editing by Christian Schmollinger, Sherry Jacob-Phillips and Sharon Singleton)


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