Neil Maidment London
British recruitment firm Michael Page International saw no end to a hiring freeze in the turbulent banking sector, one of its key markets, it said yesterday as it posted a slowdown in group fee growth over the past month.
Shares in the company, which also warned over the effects of the euro zone debt crisis, dropped to a near two-month low in London.
“Clearly there are still issues around the euro zone sovereign debt and these things are influencing our business, but… I don’t think things are getting worse,” chief executive Steve Ingham said.
“Our conclusion on March was that banking remains difficult (and) certain geographies remain more challenging than others,” Ingham said, identifying Italy, Spain and Britain.
The group, which places people in accounting, financial and legal jobs, said its net fees had risen 7 percent in the first quarter as a whole, implying a slowdown in March – a key month because it tends to be clear of holidays around the world – given fees had risen 10 percent in January and February.
However, it said it was well spread to prosper regardless.
“The diversity of the business, in terms of other professions away from banking and other geographies away from the UK and southern Europe, makes us feel that we can achieve solid growth this year,” Ingham said.
Michael Page said fees in banking, which accounts for about 8 percent of group profit, fell 12 percent in the quarter, with financial clients slow to start hiring again in an uncertain economic climate.
The bank sector in Europe has been hit by a series of negative factors ranging from increased regulation to tough trading conditions. – Reuters