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Worker Demand Rebounds, But Iran War Threatens Recovery
24 Apr
Summary
- Robert Half anticipates first hiring rebound since 2022.
- Tech and IT infrastructure roles are in high demand.
- Iran conflict poses a significant risk to recovery trends.
Recruitment firm Robert Half Inc. has signaled a potential rebound in worker demand, forecasting a 1% to 3% increase in adjusted revenue for the third quarter. This marks the first expected expansion since 2022, driven by small and medium-sized businesses looking to expand their workforces after a period of careful hiring. Companies are particularly seeking talent for technology modernization and IT infrastructure projects.
Despite this optimistic outlook, Robert Half's CEO Keith Waddell highlighted concerns regarding the Iran conflict. While current client demand remains largely unaffected, the firm acknowledges that persistent geopolitical pressures could jeopardize the fragile recovery. This caution is echoed by other global recruitment agencies like Randstad NV and Robert Walters Plc, which have also warned of potential impacts on consumer and business confidence.
Robert Half's first-quarter gross profit of $480 million, though down for the 14th consecutive quarter, slightly exceeded analyst expectations. However, the company's second-quarter earnings per share projection of 20 to 30 cents fell short of analyst forecasts, indicating that labor demand is still soft. The company's performance follows similar cautious signals from ManpowerGroup Inc. and Randstad NV, underscoring the delicate nature of the current economic and geopolitical climate.
