Recruiter Randstad says talent still scarce, flags slight slowdown in October

(Reuters) - Dutch staffing group Randstad said on Tuesday talent remained scarce in the third quarter, driving a 13% rise in its core earnings, but noted a slight slowdown in hiring since the start of October.

The recruitment industry, which has boomed after coronavirus-induced lockdowns came to an end, is set to face leaner times as companies slow down hiring and expansion plans to brace for a recession.

The number of employees working was down by 1% year-on-year in the third quarter, and in the first two weeks of October there was a "marginal slowdown" compared to last year, Chief Executive Officer Sander van't Noordende told Reuters.

Nevertheless, talent remained scarce with "more jobs than people looking for jobs in quite a few countries" including the United States, Germany and the Netherlands, he said.

The group's underlying earnings before interest, taxes and amortisation (EBITA) reached 336 million euros ($332 million) in the three months to the end of September, compared with 298 million a year earlier.

A poll of 12 analysts provided by the company had forecast an underlying EBITA of 309 million euros on average.

British peers PageGroup and Hays also flagged slower hiring, notably in the United Kingdom and the United States, in their earnings releases last week.

($1 = 1.0124 euros)

(Reporting by Valentine Baldassari; editing by Milla Nissi)