Macroeconomic uncertainty has prompted clients to lengthen hiring cycles, Robert Half Inc. (NYSE: RHI) President and CEO M. Keith Waddell said. Second-quarter revenue at the professional staffing firm fell 11.7% year over year on an adjusted basis to $1.64 billion, the group reported on Tuesday after markets closed.

“Second-quarter results for talent solutions were impacted by elongated client hiring cycles resulting from ongoing global macro uncertainty. Protiviti was much less impacted with its diversified suite of solutions offerings,” Waddell said. “Pricing and gross margins remain strong, demonstrating the value-added benefit we deliver for our clients.”

Revenue came in below analysts’ expectations, according to Yahoo Finance.

Temporary staffing revenue fell 14.0% year over year in the second quarter on an adjusted basis, while permanent placement revenue fell 25.0%.

Adjusted revenue represents growth rates adjusted for the impact of billing days and foreign currencies.

Second-quarter international temporary staffing revenue fell 6.2% on an adjusted basis, while international permanent placement revenue fell 21.9%. International total talent solutions reported a fall of 9.2%. Protiviti revenue increased by 4.2%. Overall international revenue fell by 5.8%. All on an adjusted basis.

In the US, temp staffing revenue fell 15.9% on an adjusted basis, while permanent placement revenue fell 26.1% — both on an adjusted basis. Total talent solutions decreased by 17.2%. Protiviti revenue decreased by 2.3%. Overall US revenue declined by 13.2%. 

The second quarter included $5.1 million in severance costs related to employee headcount reductions in the company’s talent solutions businesses and $400,000 related to headcount costs at Protiviti.

Looking ahead Robert Half forecast third-quarter revenue of between $1.48 billion and $1.58 billion, a year-over-year decrease of 16% on an adjusted basis at the midpoint ($1.53 billion).

Robert Half shares closed at $75.43, down 5.96% on the day and 16.67% above the 52 week low of $64.65 set on 31 May 2023. The company has a market cap of $8.64 billion.