Recruiter hit by downturn

ADECCO, the world’s largest temporary staffing agency, yesterday said that economic stagnation in the Eurozone and Japan had caused its second-quarter net profit to dip 20 per cent to €113m (£89m).

The firm reported a four per cent drop in sales to €5.2bn, with France, Iberia, Italy and Japan posting double-digit falls in revenue.

“Europe is weakening further,” the Swiss company said, adding it would continue to focus on price discipline and cost control.

Temporary employment is seen as a leading indicator for wider labour markets. Many employers have been reluctant to commit to full-time hiring, often preferring temporary workers as a way of staying flexible in case the recovery falters.