Increase in temporary jobs points to recovery, says CPL
RECRUITMENT company CPL Resources believes a growing demand for temporary staff bodes well for a recovery in the battered jobs market.
The job placement company is "beginning to see an increase in demand for temporary staff", as well as a small improvement in "candidate and client sentiment", the company said in a statement accompanying a grim set of results for the second half of last year.
"Some commentators are forecasting a return to economic growth in Ireland towards the end of 2010, and we remain well-positioned to take advantage of any upturn in the market," it added.
CPL saw profits plunge as unemployment soared last year, pushing the number of people out of work to more than 400,000.
While unemployment remains high, there have been some stabilising signs after the rate fell from 12.6pc to 12.5pc in October, the first fall in two years.
"Typically temporary jobs are the first to start growing as the economy starts to recover," the founder and chief executive of the Dublin-based recruiter Anne Heraty said yesterday.
While the future may be bright, CPL reported a 37pc slide in gross profits in the second half of last year to €12.9m from the same period the previous year.
Pre-tax profit was €2.3m, up from €1.5m, although the earlier figure was depressed by write-offs.
Ms Heraty said she "wouldn't argue" with a €4.3m estimate for full-year pre-tax profit by Goodbody Stockbrokers. The fiscal second half of the year will "be broadly similar" to the six months through December, Ms Heraty said yesterday.
"Put it like this, it won't get any worse," she added.
Earlier this month, Britain's largest recruitment agency, Hays, reported a 30pc fall in second-quarter income, but said major market demand had now stabilised.
Fellow British recruiter Michael Page International later added to evidence of improving global job market conditions, saying it was seeing a recovery in all regions except the UK.