Global Hiring Slows On Weaker Economy, World’s Largest Recruiter Warns

(Bloomberg) -- Businesses are seeing less urgency to hire than they did a year ago due to the challenging economic climate, according to the world’s largest provider of employment services. 

Randstad NV’s “clients are more focused in hiring” this year, Chief Executive Sander van ‘t Noordend said in an interview. “They’re taking a little longer to hire.” 

Global companies across industries are feeling uncertain about the outlook for the economy, according to the Dutch company. That uncertainty typically translates into a greater hesitancy on investment and hiring.

Earlier this month, Hays Plc said filling permanent positions remained more difficult as clients take longer to hire. British staffing company PageGroup Plc also said temporary recruitment continues to outperform permanent staffing as clients look for more flexible options. 

Private-sector activity in the euro area hit a three-year low in October, suggesting the region’s economy may be in recession as rising interest rates and energy prices hurt growth. Ray Dalio, founder of Bridgewater Associates, said Tuesday he’s “pessimistic” about the outlook for the global economy in 2024.

It is more difficult to convince senior managers on hiring needs, Van ‘t Noordend said. “It just takes time and then people say, well, now it’s November, let’s hire the person in January,” he said. 

Randstad reported a 7.3% drop in organic growth for the third quarter on Tuesday, while underlying earnings before interest, taxes and amortization beat estimates in a Bloomberg survey. Shares erased earlier losses and trade up 2.4% in Amsterdam at 1:08 p.m. local time.

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