Temporary Hiring Surges Amid Economic Uncertainty

In the first quarter, temporary staff hiring continued to outpace permanent recruitment, a trend observed since 2025. Adecco Group's CEO, Denis Machuel, reported a nearly 7% decrease in permanent hires for both Adecco and LHH divisions. He attributed this to economic uncertainty, explaining that companies opt for flexible placements while the overall economy remains robust.

However, specific markets demonstrated resilience against this trend. Spain, Latin America, and the Asia Pacific region saw permanent recruitment increase by up to double-digit percentages in the quarter ending March 31. Adecco's overall performance surpassed expectations, with its brand achieving double-digit growth in Iberia, the Nordics, North America, Latin America, and Asia.

The conflict in the Middle East had no discernible impact on the job market during this period, a fact that surprised Machuel. Adecco reported no disruptions in its Middle East operations, noting the region's economies remain resilient. The company projects a marginally lower gross margin in the second quarter due to seasonality and expects higher selling, general, and administrative expenses quarter-on-quarter.