Gakujo, a Tokyo-based firm, reported revenue fell 2.2% in its fiscal first quarter, which ended 31 January, to JPY 1.45 billion (USD 9.4 million). However, the firm forecasts growth for the full year.

The company provides human resources and recruitment services in Japan. It conducts college campus, mid-career and business recruitment activities. In addition, it provides staffing services for small and medium-sized venture companies.

It noted a decrease in attendees at job fairs for fourth-year students during the first quarter, which impacted sales.

Still, Gakujo noted an ongoing labour shortage in Japan, which is driving demand for workers and creating a greater interest in contingent work.

“As lifetime employment is no longer the norm and workers are increasingly taking the initiative in shaping their careers, employment mobility is expected to increase and the job-changing market is expected to expand further,” according to the company.

First-quarter gross margin narrowed to 49.6% from 60.8% in the year-ago quarter.

Gakujo forecasts that cumulative revenue for the first half of the year will be up 17.6% to JPY 4.73 billion (USD 32.0 million). Gakujo expects full-year revenue to rise 14.6 % to JPY 12.3 billion (USD 83.1 million).

Share Price

Shares in Gakujo closed up 0.8% on 10 March to JPY 2,010 (USD 13.58), 14.72% below their 52-week high.