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Steven Ingham, chief executive of recruitment giant Michael Page, today said that the job market in the UK is finally showing signs of stabilising but has still to get through what he predicts will be a very difficult summer.
“This month in particular makes it hard to ascertain which way the market will go. A lot of people — particularly senior people who are the decision makers — are on holiday and we won't know what's happening until they come back,” said Ingham. “We anticipate a challenging quarter as we enter the seasonally quieter summer period both in continental Europe — which went into the downturn later — and in the UK.”
Page has slashed its workforce by a third in the last 12 months as it cut its costs to reflect the sudden downturn in the market. In the first half of this year Page shed 1200 people taking its total staff down to 3700.
Ingham said its headcount is now stabilising and in a few selective areas such as finance and banking it is starting to take on new headhunters. He said: “A lot of our competitors have been disappearing and that has given us the opportunity to move onto the front foot and hire one or two people in selected areas. In that sense we are seeing stability in the UK, Asia and Australia. In the banking and finance sector the reality is that people are on the move again.”
Ingham said that, as is customary during a downturn, the permanent jobs market had been harder hit than the temporary market and that vacancies are now taking longer to fill than they used. But Ingham said that permanent placements, which tend to be more profitable than short-term ones, are likely to pick up much more quickly as the world's various economies move out of recession.
Pre-tax profits halved in the six months to end-June at £43.2 million on revenues a third lower at £365 million. Profits were flattered by reimbursement of £37 million from Her Majesty's Revenue and Customs for overpaid VAT dating back up to 30 years. Page is claiming another £80 million from the taxman. Ingham said that given the severity of the economic downturn the group's ability to remain in profit in the first half had been a “robust performance”. That is reflected in the decision to maintain the first half dividend at 2.88p a share despite the fact that earning crashed by 97% to just 0.5p a share.
A year ago Page rejected a £1.3 billion takeover bid from its European rival Adecco which last week agreed a bid for the British group Spring. The Adecco offer for Page was at 400p a a share. Today the shares fell 6.2p to 313.1p.
Reader views (12)
Mr Price, as a foreigner living in Cape Town, but following the global economy (and that of the UK in particular), I fail to understand what you are basing your facts upon. I take it you are playing devil's advocate?
- Corne Heydenrych, Cape Town, South Africa, 18/08/2009 10:42
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Michael Page, along with other large recruiters, act as barometer for what is actually going on in the daily economy, they are the first to feel the impact of vacancies being pulled, and then feel the impact of the candidate market growing as people lose their jobs on a daily basis. It is the same with Estate Agents and the housing market and so on. Keith has missed the point entirely or just does not read the press, Brown has got us into this mess, has he forgottwen who was Chancellor under Blair, the NHS is without a doubt one of a number priorities, however, what this has to do with this article I am not entirely sure. Then you get Darling making statements todya about taxing city bonuses up to 90%, what planet is the government on, they just seem so out of touch. (and no, I am not a banker) I am not saying the Tories or any other party for that matter will do any better, but they cannot be any worse than what we have currently.
- Alex L, London, Clapham Junction, 17/08/2009 16:25
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Keith Price,
Can you tell us all what the NHS has to do with Michael Page International believing the jobs market is reaching bottom?
I must say though, you really are aone Party man aren't you.
- Andrew Nicholls, Ely ,England, 17/08/2009 16:17
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Keith is obviously working for Labour"
I didn't even vote labour last time, let alone ever worked for them. You just don't like people supporting your opponents. Too bad. Grow up and get used to it.
- Keith Price, Luton England, 17/08/2009 16:14
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Keith no matter how many times you are your Liebour paymaster spin this rubbish no one is taken in.
- Howard, Wimbledon UK, 17/08/2009 15:30
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Keith is obviously working for Labour - because only someone employed by them would not think that this Government has ruined what was a booming country.
- Jk, London, 17/08/2009 14:15
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The truth is very hard to take for the most dyed in the wool Tories. But our valiant PM will protect the NHS from the detractors in your own party.
- Keith Price, Luton England, 17/08/2009 14:07
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Who is really interested in what Michael Page has to say - it's not like this organisation is in touch with its candidates/clients anyway.
- Ds, Surrey, 17/08/2009 13:34
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The truth is very hard to take for the most dyed in the wiik Tories. But our valiant PM will protect the BHS from the detractors in your party.
- Keith Price, Luton England, 17/08/2009 13:23
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Keith - what are you on?? Apart from the US, the UK is a close 2nd in terms on how hard it has been hit by the falling economy. Gordon brown should be replaced immediately!
- Andy Carter, London, 17/08/2009 13:17
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Is that sarcasm Keith or are you on another planet?
- Anon, UK, 17/08/2009 12:09
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Well done Gordon Brown for rescuing the country from the worldwide economic recession, which has hit many other countries far harder than it has us here in the UK
- Keith Price, Luton England, 17/08/2009 10:41
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