UPDATE 2-USG People sees more job demand in Europe, 2010 div

Published 10/29/2010, 03:37 AM

* Sees no signs of weakening demand, growth to continue

* To resume 2010 dividend after omiting 2009 payout

* Q3 EBITA before one-offs 33 mln euros vs 31.6 mln poll avg

* Shares little changed in flat Dutch market

(Adds CEO comment)

By Gilbert Kreijger

AMSTERDAM, Oct 29 (Reuters) - Dutch staffing firm USG People NV expects more growth in its European business, including in its main domestic market, as demand for workers spreads to more white-collar sectors.

The staffing sector is seen as a barometer of economic health, and in the face of a fragile recovery firms are hiring more temporary staff, including in sectors which tend to pick up later in the cycle such as IT, accounting and administration.

Economic uncertainty supported a profit rise at rival Manpower last week, while Dutch rival Randstad has said growth was expanding to more sectors and that permanent job placements were increasing.

Employment has risen in major western European economies, especially in Germany, where exports have helped push the jobless level to its lowest in 18 years.

Macroeconomic data in Europe's major economies of Germany, France and Britain this week boosted hopes the region's economy will stay resilient through the final quarter of this year and sustain employment.

"I think the recovery is durable unless something terrible happens on the macroeconomic front," USG Chief Executive Rob Zandbergen told Reuters on Friday.

Demand for temporary staff had spread from manufacturing to office jobs such as call centre workers, engineers and IT experts, said Zandbergen, head of Europe's fourth-largest staffing firm by revenue after Adecco, Randstad and Manpower.

Uncertainty was helping push up demand for workers but companies also increasingly hired more permanent employees, said Zandbergen, who expected growth to continue in all countries.

The company will resume paying a dividend after halting it in 2009 when it booked a net loss.

USG's Dutch market, where it makes 39 percent of sales, started growing again in September and October despite a 4 percent revenue fall over the July-to-September period compared to the same quarter last year, the company said.

Its Dutch sales had been falling since the third quarter of 2008, the height of the credit crisis.

Third-quarter earnings before interest, tax and amortisation costs, excluding incidental items (recurring EBITA), were 33 million euros ($45.8 million), beating the mean estimate of 31.6 million in a Reuters poll of banks and brokerages.

Dutch rival temp agency Brunel will report third-quarter earnings on Nov. 2. (Reporting by Gilbert Kreijger; Editing by Sara Webb and Michael Shields)

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