Adecco forecasts hard times for European job seekers

Adecco , the world's largest temporary staffing firm, cautioning on Thursday of challenges ahead in Europe as top market France and other euro zone countries look unlikely to emerge anytime soon from the paralysing debt crisis.

"Revenue development in July was slightly weaker, mainly driven by France and Japan. Geographically, developments continue to be diverse. Europe is weakening further," the company said in a statement.

Temporary employment is seen as a leading indicator for wider labour markets. Many employers have been reluctant to commit to full-time hiring, preferring temporary workers as a way of staying flexible in case the recovery falters.

Joblessness remains stubbornly high in the United States, while in Europe governments are imposing searing budget cuts and battle record high unemployment.

Adecco, which competes with Dutch group Randstad and America's Manpower , said second quarter net profit fell 20 percent to 113 million euros ($139.63 million), weighed by restructuring charges and a higher tax rate.

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However, profit still beat the average forecast of 100 million euros in a Reuters poll and the company also confirmed its mid-term target of 5.5 percent margin on earnings before interest, tax and appreciation.

($1 = 0.8093 euros)

(Reporting by Andrew Thompson)

Adecco forecasts hard times for European job seekers

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