Adecco, a leading provider of workforce outsourcing services, reported its quarterly performance along with CEO Denis Machuel’s insight that the IT labor market in the United States has reached its nadir. Despite some news of downsizing, it is not expected to worsen further. However, the recovery process will take some time.
Adecco’s revenue from the North American region declined by 14%, mainly due to a decrease in IT and automotive labor. In contrast, the retail side of the workforce remains robust. The IT labor market has not completely contracted, and Adecco’s performance in other regions like Asia-Pacific continues to grow.
Last month, Gergely Orosz, author of The Pragmatic Engineer, described the current economic scenario, noting that the rising interest rates in the US have led to less poaching of employees by companies. This, in turn, has also resulted in decreased adoption of cutting-edge technologies.
Source: Channel News Asia, Adecco
TLDR: Adecco’s CEO believes the IT labor market in the US has hit bottom, with a 14% revenue decline in North America, while the retail workforce remains strong. The use of new technologies has also decreased due to a lower rate of employee poaching.
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