PageGroup reported gross profit at its US operations fell 15% in constant currency during the first quarter compared to growth of 2% in the fourth quarter of 2022.
“The [US] conditions we saw at the end of 2022 continued into Q1, with uncertainty around market conditions affecting both candidate and client confidence, particularly within our technology and banking disciplines,” the UK-headquartered staffing firm announced in a trading update released today.
In the Americas region — which comprises 16% of the company — PageGroup reported gross profit fell 7.6% year over year in the first quarter in constant currency. In addition to the 15% decline in the US, gross profit was down 4% in Mexico, driven by increased delays in decision making. Brazil fell 13%, but other Latin American markets saw collective growth of 23%.
In line with the more challenging conditions, overall fee earner headcount decreased by 134, mainly in the US, Brazil and Mexico.
First-quarter gross profit for the entire company fell 2.4% in constant currency to £262.7 million (US$324.4 million) with growth in the group’s largest region, EMEA, offset by declines across all the group’s other major regions.
For full coverage of PageGroup’s trading update, please see the news item in the EMEA edition of the SIA Daily News.