Employment firm Randstad posts declining results for 2024, are optimistic for this year

Temporary employment agency Randstad has posted declining results in 2024 due to the cooling labor market in many countries where the company operates. Due to the weakening economy, many companies have become more hesitant to hire temporary staff. Randstad also said that there was pressure on hiring staff and general customer trust during the fourth quarter. They did add that stabilization could be seen in certain markets.

The turnover for 2024 dropped by five percent to 24.1 billion euros in comparison with a year earlier. The adjusted net profit dropped by 50 percent to 405 million euros. CEO Sander van ’t Noordende explained that the underlying results were robust, and actions have been taken to lower the costs. He added that Randstad is in a good position for the next year.

Income dropped most severely in the North America and Northern Europe markets in the last quarter. Southern Europe, the United Kingdom, and Latin America also saw lower yields in the last three months of 2024, as did the Asia Pacific region.

Turnover in the Netherlands dropped by seven percent to three billion euros, and in the North American market, which is very important for the company, the income dropped by 11 percent to less than 4.8 billion euros. Another important market for the company is France, where the drop in turnover was six percent to 3.6 billion euros.

It was reported in October that Randstad was taking over the smaller temporary employment agency Zorgwerk. Randstad wants to use the purchase to grow in the increasingly important care sector. Zorgwerk has 75,000 healthcare professionals in its database.

Van ’t Noordende said that the market conditions are challenging, but it is a mixed picture. North Western Europe is continuously tough, but the company is doing quite well in Spain and Italy.

He also added that companies are optimistic regarding temporary employment in the United States due to President Donald Trump’s deregulation plans. However, this optimism is not showing in Randstad’s activities as of yet, said the CEO.

The company’s Financial Director, Jorge Vazquez, said that Randstad is expecting this year to be much more successful when it comes to hiring staff by companies but that there is still not really a recovery when it comes to demand.