July 22 (Reuters) - Early indicators of hiring demand are showing signs of improvement, Randstad executives said on Wednesday, suggesting a labour-market downturn that has weighed on staffing firms for more than two years may be beginning to bottom out.
Chief Executive Sander van 't Noordende said demand improved across a broad range of markets during the second quarter, led by Randstad's operational, or blue-collar, business and temporary staffing services, which typically recover ahead of permanent recruitment.
In the United States, Randstad's revenue rose 4%, driven by a 13% increase in its operational business, while professional staffing revenue fell 6%, highlighting a recovery concentrated in the most cyclical parts of the labour market.
Germany, Europe's largest economy and a key market for recruiters, showed a similar pattern.
BIG CLIENTS MOVE FIRST
Randstad said larger corporate clients have become increasingly willing to hire, while smaller businesses remain more cautious.
"The larger customers have been less shy," van 't Noordende said, contrasting them with smaller companies that are still taking a wait-and-see approach.
Executives also highlighted improving labour-market indicators in the United States. Chief Financial Officer Jorge Vazquez said the hiring rate, which has remained below pre-pandemic levels since the post-COVID slowdown, was starting to edge higher.
Shares in European staffing companies have rallied in recent weeks as improving business surveys and hiring indicators fuel hopes that the sector may be nearing a turning point after a prolonged downturn.
While permanent recruitment remains subdued, the improvement in temporary staffing and blue-collar hiring is often viewed as an early signal that broader labour-market conditions are stabilising.
Reporting by Jakob Van Calster
Source: Reuters