Adecco says employer confidence slightly higher after Q1 beat

Adecco ADEN is seeing slightly improved confidence from employers, the staffing company said on Tuesday, although it was too early to say when a full economic rebound would get underway.

Recruiters - seen as bellwethers for the broader economy - have been flagging tough hiring conditions in recent quarters, as workers prefer to avoid the risk of changing jobs.

Many companies are also laying off staff or freezing recruitment as they cope with high inflation, interest rates and the impact of the war in Ukraine.

"Employers generally are a bit more confident than they were several months ago," Chief Executive Denis Machuel told Reuters after Adecco posted first-quarter results ahead of expectations.

But uncertainties remained, he said, with France and Britain showing downturns and employees still cautious about switching jobs.

"We are navigating uncertain waters," Machuel said. "There are some places where we see very good dynamics in the market but in others it is more soft."

For the three months to the end of March, Adecco reported revenue falling 3% to 5.72 billion euros, slightly ahead of forecasts for 5.69 billion euros.

When adjusted for trading days, currencies and acquisitions, the Swiss company's revenue was flat when compared with a year earlier.

The trend had also continued into April, with volumes - the number of people and hours it was placing with employers - showing demand had remained steady.

First quarter net profit fell to 20% to 73 million euros ($78.57 million), beating analyst forecasts for 59 million euros.

Still, giving a time-frame for a full economic recovery was "very delicate," Machuel said, saying Adecco was concentrating on its own business and taking market share from rivals.

Dutch staffing company Randstad RAND last month reported a 7.8% drop in its first-quarter revenue, while American peer ManpowerGroup MAN meanwhile reported an 7.3% decline.

"We have outperformed our two key international rivals," said Adecco Chief Financial Officer Coram Williams. "This shows we are taking market share."

($1 = 0.9291 euros)