Staffing company Adecco expects hiring to pick up, boosted by defence spending

By John Revill

ZURICH, Jan 22 (Reuters) - Adecco Group ADEN.S is expecting an upturn in hiring in 2026, helped by increases in defence spending and as companies switch from waiting out uncertainty to taking on new workers, the staffing company's CEO Denis Machuel said on Thursday.

His upbeat comments helped push the company's stock 4.7% higher on Thursday.

"We will have a more dynamic market this year. We finished last year and started with good momentum this year, and I think it's going to continue," Machuel told Reuters at the World Economic Forum in Davos, Switzerland.

"People and companies are saying, okay, 'uncertainty is going to remain, so let's get going,'" he added.

Last year's wave of tariffs launched by U.S. President Donald Trump had not derailed global trade and conditions appeared manageable, he added.

FOCUS ON EUROPEAN DEFENCE SPENDING THIS YEAR

Swiss-based Adecco has an insight into the global market from its business supplying temporary and permanent workers to industries ranging from banking to logistics.

Machuel said permanent recruitment remained weak, but temporary staff hiring was improving in Europe and the United States.

Machuel pointed to early signs that tech hiring is picking up in the U.S., not just at large technology companies but also in roles within non-tech firms.

In Europe, Machuel said Spain was performing strongly, France was gradually improving but the UK market remained challenging due to a weaker economy. In Germany, he said automotive hiring was still weak, but defence-related activity was improving.

Machuel said defence would be a major theme this year, with increased government spending driving recruitment — particularly for engineering and technology skills tied to designing equipment and systems rather than large-scale factory hiring.

Adecco is the partner for Australia’s defence forces on recruitment, where it runs the process for soldiers and civilians. The company is also part of the consortium that does the same in the UK.

"We are actively in discussions with several countries where our know-how in recruitment can be useful," Machuel said. "The core responsibility of these organisations is to train soldiers to fight, and run operations, while our specialism is recruitment."