Global recruitment company PageGroup has reported a 12% drop in gross profits for the first quarter of 2025, attributing the downturn to persistent economic uncertainty and a continued slowdown in hiring. Gross profit fell to £194 million, down from £220 million during the same period last year, making it the company’s weakest first-quarter performance since the 2021 pandemic recovery period.
PageGroup stated that its performance reflects hesitation among employers to commit to new hires. While interview activity remains steady, the number of successful placements has declined. Businesses across several markets are delaying decisions, citing inflation, increased payroll taxes, and geopolitical uncertainty as key concerns. These factors are causing delays in recruitment processes, particularly for permanent roles.
In response, the company has implemented a significant cost-saving programme, which includes a 25% reduction in staff. Around 130 roles have been cut globally — 74 fee-earning consultants and 59 support staff. The company expects these changes to deliver £15 million in annual savings, although they come with a one-off restructuring charge of the same value.
Regional results showed particular weakness in Europe. In France, profits declined by 17%, and in Germany by 12%, reflecting broader hesitancy in European hiring markets. The UK also reported weaker activity, especially in professional services, finance, and administrative roles. In contrast, the United States posted a 7% increase in profit, with strong demand in engineering and manufacturing helping to stabilise growth.
Chief Executive Nicholas Kirk said that although current conditions are difficult, PageGroup is maintaining focus on long-term performance. He emphasised the company’s investment in digital tools, consultant training, and client service, all of which are part of a wider plan to ensure PageGroup can respond quickly once market conditions improve.
Kirk also acknowledged that the average time between interview and placement has increased. “Employers are still engaging in recruitment conversations, but they’re taking longer to make decisions. This isn’t unusual during uncertain times — but it does affect the flow of placements and our earnings,” he said.
In the UK, recruitment agencies report a shift in candidate behaviour too. Many professionals are reluctant to move roles unless significant benefits are offered. Flexible working, improved salaries, and enhanced job security are now more important than ever to applicants, making it harder to fill roles in competitive sectors.
PageGroup has advised its clients to use this quieter period to review hiring strategies, build candidate pipelines, and ensure their recruitment processes are inclusive and responsive. The firm is also investing further in diversity, equity, and inclusion initiatives to help clients attract talent from underrepresented groups.
The wider recruitment industry has echoed similar concerns, noting that while temporary hiring has shown some resilience, permanent placements have been falling for more than two years. However, there is still underlying demand for skilled workers in healthcare, education, tech, and infrastructure — sectors which may lead any eventual recovery.
PageGroup’s financial position remains strong, and the company believes that its diversified client base and international reach will support recovery when conditions improve. For now, the company says it is focused on maintaining operational efficiency and working closely with both clients and candidates to prepare for a more stable second half of the year.
While the results may reflect a cautious market, PageGroup’s long-term view is clear: hiring activity may be on pause, but the need for talent has not disappeared. The question is when — not if — that demand will return.
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