Recruitment firm reports slowing UK growth

Recruitment firm Michael Page today said its UK growth slowed to almost a standstill last quarter as the financial sector turmoil put the brakes on new hirings.

The group saw UK gross profits during the second quarter this year rise by 1.2% to £48.5m (€61.3m) compared to last year, down from the 6.7% and 16% growth seen during the previous two quarters. Profits from finance and accountancy recruitment fell 8% in the second quarter.

Micheal Page, whose UK business contributes nearly a third of group profits, said second quarter trading was boosted by Easter falling in March but this was “offset by the continuing weakness in the banking and related sectors”.

The UK was by far the worst performing region for the recruiter. Overall gross profits were up 26% to £152.4m (€192.5m) during the second quarter, boosted by growth on mainland Europe, Asia-Pacific and the Americas.