(Reuters) – British recruiter Robert Walters said on Tuesday that U.S. tariffs would likely further dent the hiring market in the near term as it reported a 16% drop in the first-quarter income it earns from fees and consulting services.
The warning comes just a week after peer PageGroup withheld its financial forecast and implemented cost-cutting due to what it called “increasingly unpredictable” conditions resulting from tariffs imposed by U.S. President Donald Trump.
Even though the duties targeting most countries have been paused for 90 days, the U.S. tariff offensive has disrupted global trade relations and increased the likelihood of a recession.
This is likely to exacerbate a slowdown in decision-making by prospective employers and job seekers, who were already grappling with political and economic uncertainty in major European economies including the UK, Germany and France.
“Increased uncertainty regarding the flow of global trade due to tariffs is likely to be a further headwind to client and candidate confidence in the near term, limiting visibility on the outlook for the balance of the year,” Robert Walters’ CEO Toby Fowlston said.
For the quarter ended March 31, the company reported net fee income of 67.3 million pounds ($88.75 million) compared with 81.3 million pounds a year ago.
“Continual focus is being applied to all elements of our cost base,” Fowlston said. Robert Walters has been implementing cost-saving measures, including investing in AI and consolidating its office network.
($1 = 0.7583 pounds)
(Reporting by Raechel Thankam Job in Bengaluru; Editing by Savio D’Souza, Mrigank Dhaniwala and Joe Bavier)
