The world's biggest temporary staffing group Adecco said Wednesday that its second quarter net profit soared 45 percent to €141 million, thanks to strong demand in the industrial segment.

"/> The world's biggest temporary staffing group Adecco said Wednesday that its second quarter net profit soared 45 percent to €141 million, thanks to strong demand in the industrial segment.

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ECONOMY

Adecco sees profits jump

The world's biggest temporary staffing group Adecco said Wednesday that its second quarter net profit soared 45 percent to €141 million, thanks to strong demand in the industrial segment.

Revenues were up 11 percent at €5.166 billion for the three months ending June, and the Swiss-based group forecasted that the third would also be a strong quarter.

“We had again very solid double-digit revenue growth this quarter, still driven by strong demand in the industrial segment,” said Patrick De Maeseneire, Adecco chief executive officer.

“Revenue growth in July was a touch lower than June and from todays perspective we expect a solid third quarter,” he added.

Amid the current economic uncertainties, De Maeseneire stressed that the group would “keep a close lid on our cost base.”

France, Adecco’s biggest market, posted a 15 percent revenue growth for the second quarter. North America also held up well, with an increase of 12 percent.

But the strongest performance came from Italy, where revenues rose 35 percent and from Germany and Austria, which recorded a 31 percent jump in demand.

Revenues were however flat in Britain and Ireland, while in Japan, they grew just 4 percent.

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ECONOMY

Why Switzerland continues to attract foreign companies despite the coronavirus pandemic

Despite the pandemic, 220 foreign businesses set up their offices in Switzerland in 2020.

Why Switzerland continues to attract foreign companies despite the coronavirus pandemic
Switzerland is a magnet for foreign companies. Photo by Valeriano de Domenico/AFP

While this number is 9 percent lower than in the previous year, these companies have created 11 percent more new jobs — a total of 1,168 — than in 2019. Most of the new jobs were created by companies from China, the United States and Germany.

About 3,600 more positions are expected to be offered by these enterprises in the next three years, according to data from SRF, Switzerland’s public broadcaster.

In fact, Switzerland is one of the very few countries that have been able to attract international companies to its shores in 2020, a notoriously bad year for the global economy.

READ MORE: Why Switzerland’s economy is on the up despite the coronavirus pandemic

Experts believe this is due to the country’s strengths, including political, economic and financial conditions.

“Even in a time of crisis, Switzerland scored thanks to its stability, predictability and security”, said Patrik Wermelinger, member of the executive board of Switzerland Global Enterprise (SGE), which promotes the country abroad on behalf of the federal government and the cantons.

There are also other reasons that had prompted foreign companies to come to Switzerland in 2020, despite the economic uncertainty and travel restrictions.

“Protection of legal rights, freedom, and personal responsibility are stronger in Switzerland than in many other countries, even in times of pandemic”, said SGE’s co-president Walter Schönholzer.

Switzerland’s attractiveness is also boosted by studies showing the country’s economy remains the strongest in the world.

Even though the health crisis plunged Switzerland’s economic activity into a “historic” 8.2-percent slump in the second quarter of  2020, the country still boasts the world’s most resilient economy, according to research by an insurance and reinsurance company Swiss Re. 

The International Monetary Fund (IMF) expects a 3.5-percent rebound in Switzerland’s gross domestic product (GDP) in 2021.

It said Switzerland’s economy absorbed the shock of the pandemic better than other European countries and it “has navigated the Covid-19 pandemic well”.

IMF added that Switzerland’s “early, strong, and sustained public health and economic policy response has helped contain the contraction of activity relative to other European countries”.

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