By John Revill

ZURICH (Reuters) -Adecco is seeing the beginning of a recovery in the United States' staffing market, the hiring company said on Wednesday, as technology and defence companies take on more temporary workers.

Many companies are still holding back on permanent hires, however, as they weigh the flood of policies announced by President Donald Trump since January, Adecco CEO Denis Machuel said.

"It's too early to say what the impact will be," Machuel told Reuters when asked about the impact of the Trump administration. "Day after day, new things are being announced and people are trying to figure out what's happening there."

"There is momentum, maybe in the economy... but not to the extent that people are recruiting permanently," Machuel said, adding that as companies gain more clarity on the economy, permanent hiring could increase.

Machuel was speaking as Adecco reported lower sales and operating profit during the fourth quarter, the latest company in the staffing sector to show that employers have slowed hiring due to political and economic uncertainty.

The Swiss company's revenues fell to 5.87 billion euros ($6.2 billion), 5% lower when adjusted for trading days, currencies and acquisitions, matching analyst forecasts in a company-compiled consensus.

Operating profit fell 20% to 144 million euros, beating forecasts of 130 million euros, while net profit of 73 million euros, above a 63 million euro forecast.

Germany, France, and Britain remained difficult markets for the company due to political uncertainties and problems affecting specific sectors like automakers, Machuel said.

But there were signs of an improvement in hiring conditions at the start of the year across many other countries and industries.

"In the first two months of 2025, every week there was a modest improvement in volumes," Chief Financial Officer Cora Williams said. "We are not talking about a roaring recovery, but there is momentum."

($1 = 0.9532 euros)

(Reporting by John Revill; Editing by Rachna Uppal)