Demand for temporary workers gives a lift to Adecco’s income

City A.M. Reporter
ADECCO, the world’s biggest staffing agency, posted a 61 per cent jump in net profit in the third quarter yesterday and flagged rising demand for temporary workers as companies look for flexibility to weather a volatile European economic recovery.

The staffing sector is generally seen as a barometer of economic health because companies tend to hire temporary workers at the beginning of a recovery when most businesses are reluctant to commit to full-time hiring.

Chief executive Patrick De Maeseneire told Reuters that uncertainty about the underlying health of the continental economy would keep demand for temps buoyant.

“With two crises behind us, companies will be hesitant to hire fixed workers. There are going to be bumps along the road and there is also no scarcity, so why would companies hire fixed and pay more in terms of charges and benefits?”

On Tuesday, the European Commission trimmed its expectations of growth for the Eurozone next year, with weaker private demand and investment expected to hold back momentum.

Adecco has cut costs during the crisis. Net profit was €191m (£160.7m) in the third quarter compared to €118m a year earlier, beating the average analyst poll forecast of €137m.