Staffing group Randstad is expanding again after a period of falling revenue. Growth in North America strengthened in recent months, and several European markets also improved. According to chief executive Sander van ’t Noordende, these developments give the organisation confidence for the remainder of the year.
Randstad reported revenue of €5.9 billion for the second quarter, a 2 per cent increase compared with the same period last year. Net profit reached €84 million, representing a 79 per cent rise.
“Now that markets are largely growing again and volumes picked up further during July, we are confident that we will continue to make progress for the rest of the year,” Van ’t Noordende said.
Weak market conditions
Randstad had faced weak market conditions for some time, but that trend appears to have shifted. The situation in North America stabilised in the first quarter, and revenue there rose by 4 per cent. Germany and Italy also recorded 4 per cent growth. Revenue in the Netherlands fell by 1 per cent last quarter, though the company expects conditions to improve soon.
Van ’t Noordende believes the period of declining revenue has now ended for the time being. He said the global economy has proven more resilient in recent months than many had feared. Oil prices have increased, but not to extreme levels, he added. Companies, he said, “continue to do business”.
The rise of AI
A mix of uncertainty and rising markets appears to be benefiting Randstad. Van ’t Noordende noted that many organisations have work that needs to be completed. When companies are unsure whether they can hire permanent staff, temporary workers offer flexibility.
Demand for temporary workers is also increasing due to factors such as the rise of artificial intelligence (AI) and additional investment in the defence sector. In France, for example, defence spending is contributing to demand, even though overall revenue there declined because small and medium‑sized enterprises are struggling to recover.
In the Netherlands, Randstad has observed that banks are reducing the size of departments responsible for screening customers and transactions for signs of money laundering. In recent years, banks hired many additional staff in this area to meet regulatory requirements.
@anp | NEWS BRAINPORT
