Robert Walters sees fee income fall again as hiring remains under pressure
Declines in overall fee income across the group picked up pace from the 10% constant currency fall seen in the second quarter.
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Your support makes all the difference.Recruitment firm Robert Walters has revealed another double-digit fall in fee income as economic uncertainty continues to weigh on hiring activity.
The group posted a 13% constant currency fall in group net fee income for the three months to September 30, down 17% on a reported basis.
It reported a 13% decline in fee income across the UK, although this was better than the 21% plunge seen in the previous three months.
Robert Walters said it was a “resilient performance” amid global economic uncertainty, with hiring activity remaining stable on the previous quarter.
However, declines in overall fee income across the group picked up pace from the 10% constant currency fall seen in the second quarter as it saw steep falls across Asia Pacific and the US.
Hiring activity levels remained largely stable quarter-on-quarter with contract and interim recruitment outperforming permanent recruitment as organisations focused on shorter-term solutions to meet their hiring needs
Robert Walters warned over annual profits in June after seeing fee income tumble amid a weakening jobs market, with cost pressures and interest rate hikes seeing firms rein in their recruitment.
The latest update showed fee income tumbling by 23% across Australia and New Zealand, and a 16% drop in China amid “ongoing challenging market conditions”.
Robert Walters said the US market remained challenging, in particular across technology and financial services
Hiring across these sectors was also under pressure in the UK as high inflation and interest rates impacted confidence, according to the firm.
It said legal recruitment remained relatively resilient in the UK while activity overall was strongest in the regions.
The group cut its own staff numbers by 2%, or 80 roles, to 4,200 since the end of June and said it continues to “closely manage its cost base in line with market conditions”.
Toby Fowlston, chief executive of Robert Walters, said: “Our third-quarter performance was resilient despite the ongoing global macro-economic uncertainties.
“Hiring activity levels remained largely stable quarter-on-quarter with contract and interim recruitment outperforming permanent recruitment as organisations focused on shorter-term solutions to meet their hiring needs.”