Temp agency Adecco is in an upbeat mood as its third quarter profit beat expectations at 128 million euros, a 42 percent increase.
The world’s biggest staffing group expects revenue to rise as uncertain economic times provide an incentive for companies to hire temporary rather than permanent workers.
“The unemployment levels are not changing short term,” Chief Executive Patrick De Maeseneire said. “Why would you hire fixed if you can have the people on a flexible basis in a still rather volatile environment?”
France and North America, Adecco’s two biggest markets, reported robust growth.
Temporary employment is often seen as a leading indicator for wider labour markets and analyst Martin Koch at Swiss private bank Wegelin said: “The development in the job market gives us hope generally of a further recovery of global markets.”
Adecco’s rivals Randstad and US listed Manpower also both substantially beat forecasts with their most recent quarterly profit.