The logo of Swiss Adecco Group is seen at its headquarters in Zurich, Switzerland October 30, 2018. REUTERS/Arnd Wiegmann
ZURICH, Nov 2 (Reuters) – Adecco Group (ADEN.S)continues to see an increase in hiring and expects fourth-quarter revenues to grow modestly, the recruitment and temporary staffing company said on Tuesday, but warned that customers are struggling to find enough skilled workers.
“Healthy demand is currently being impacted by issues created by the global pandemic, including supply chain shortages
and talent scarcity. This makes the path to recovery somewhat uneven in the months ahead,” the Swiss company said in a statement.
But the group said it had actions under way to drive profitable growth in all business units and remained “confident in its outlook as these headwinds diminish”.
Fourth-quarter revenues are expected to grow modestly on a sequential basis, Adecco said.
During the third quarter, revenues adjusted for currency movements, trading days and divestments rose 9% to 5.22 billion euros ($6.06 billion), slightly shy of analyst forecasts for 5.28 billion euros in a company-gathered poll.
Operating income rose 75% to 196 million euros, reflecting an absence of one-off COVID-related charges, Adecco said. Net income of 133 million euros also just missed forecasts for 137 million euros.
Staffing companies are often seen as signals for the health of the broader economy, with employers taking on more temporary staff at the start of a recovery and letting them go when they fear downturns.
Rival staffing company Randstad (RAND.AS) last month warned labour market shortages would be a major theme “for years to come” after it reported a 21% increase in third-quarter revenues. read more
U.S. peer ManpowerGroup (MAN.N) also mentioned it was seeing a tight labour market as employers searched for skilled staff. During its third quarter, it increased sales by 11% on a constant currency basis.
($1 = 0.8618 euros)
Reporting by Silke Koltrowitz and John Revill; editing by Emma Thomasson and Michael Shields
Mark White is the editor of the ProcurementNation, a Media Outlet covering supply chain and logistics issues. He joined The New York Times in 2007 as an commodities reporter, and most recently served as foreign-exchange editor in New York.