Randstad executives said on Wednesday that early indicators of hiring demand are showing signs of improvement, suggesting a labour-market downturn that has weighed on staffing firms for more than two years may be beginning to bottom out.

Market Trends

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.

Client Trends

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.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.