Letschatstars.

Letschatstars.

UK Recruitment Giant: US Job Market Recovery Amidst Europe's Struggles

UK Recruitment Giant: US Job Market Recovery Amidst Europe's Struggles

According to a report by the Financial Times, UK recruitment group PageGroup indicated signs of recovery in the US job market, with increasing employer confidence helping to offset the decline in profitability in Europe. Despite a 10.5% drop in gross profit in the second quarter, the Americas division has seen profit growth for the third consecutive quarter.

PageGroup, a London-listed recruitment company, experienced the gross profit decline mainly due to a deteriorating recruitment environment in its largest markets, France and Germany. However, CEO Nicholas Kirk noted that the US market is currently exhibiting "rational business behavior," and that profit from talent matching in the country has increased for three straight quarters. The Americas division's profit grew by 2.9%, accounting for nearly one-fifth of the group's total profits, with North America seeing a significant rise of 13%.

Kirk stated that the recovery in the US is largely confidence-driven, with clients and job seekers becoming more open in salary negotiations. His remarks echoed last week's non-farm payroll data, which showed that 147,000 jobs were added in June, a significant increase from the previous month's 114,000, although concerns remain regarding President Trump's tariffs and immigration policies potentially dampening recruitment demand from companies.

The European market continues to be sluggish. PageGroup noted that Trump’s tariff policies are placing pressure on the European market. In Germany, profit dropped by 21% as companies delay hiring decisions due to tariff concerns. French profits also fell by 20%. Regarding the UK, Kirk indicated that businesses are facing budget constraints following last year's government budget announcement that raised labor costs, including hiking employers' national insurance contributions, leading to reduced hiring spending.

Looking ahead, PageGroup was cautious in its outlook, refusing to provide full-year guidance in April due to tariff-related uncertainties. On Thursday, the company projected full-year operating profit ending December to be around £22 million, down from last year’s £52.4 million, but in line with market expectations. Despite facing challenges, the recovery in the US market provides a glimmer of hope for the company, reflecting an uneven pace of recovery in the global job market.