Hays places 240,000 people into temporary jobs in a typical year
(Picture: Hays )The UK’s tight labour market helped FTSE 250 recruitment consultant Hays report record quarterly income today, although it also pointed to signs of a jobs market slowdown.
Fee income at the company -- which places around 240,000 people into temporary jobs in a typical year -- rose 15% in the 12 weeks to the end of September. It was also helped by the weaker pound, which flatters fees charged abroad and translated into sterling.
Hays’ strong performance in the period came as the latest sign of the resilience of global labour markets, including in the UK, where there is a shortage of skilled and qualified staff, helping support wages and keeping recruitment consultants busy. The sector offers quick insight into any changes in wider economic conditions, leaving the outlook statements the firms make under particular scrutiny.
Julie Palmer, partner at Begbies Traynor, the business consultants, said: “The jobs market has recently defied the odds and continued to thrive as other industries bore the brunt of a consumer confidence crisis, rising inflation and interest rate hikes.
“The likes of Hays will be watched very closely in the coming months as economists and investors alike look for any sign of weakness.”
Looking ahead, Hays said activity “reduced modestly” in a number of markets as “macroeconomic uncertainties increase,” most notably in the UK and Ireland, Australia and New Zealand and the US.
Nonetheless, Alistair Cox, chief executive, said: “Our key markets continue to be characterised by acute skill shortages and wage inflation … I am confident we will deliver on the twin objectives of capitalising on our significant long-term growth opportunities, while navigating any shorter-term macroeconomic challenges.”
Shares in Hays rose 40p to 104p, a gain of 0.4%.
Earlier this week, fellow recruiter Robert Walters also pointed to a “more uncertain economic outlook” with the UK standing out as the only part of its global business where fee income dropped.
Sector peer PageGroup said yesterday that it was seeing a “slight softening” in confidence among firms recruiting across most of its markets worldwide. Page’s shares were up 3p to 388p and Robert Walters slipped 5p to 480p.
