UK-listed recruiters' shares slump on Hays profit warning
Shares in recruitment companies including PageGroup and Robert Walters nosedive after Hays cut its H1 profit expectations. IGTV's Angeline Ong investigates why Hays’ outlook has wider ramifications for the recruitment industry.
(AI Video Summary)
UK recruitment industry experiencing tough period
Companies like Hays, Robert Walters, and Adeko are seeing a decline in their profits. For example, Hays has lowered its expected profits because the first half of the year did not go as well as they had hoped, and they expect the hiring slowdown to continue in the near future. This bad news has affected other companies in the industry as well.
Reasons why the industry is struggling
First, there has been a lack of hiring, meaning fewer job opportunities. Second, there has been a lot of economic uncertainty recently, which makes both companies and individuals hesitant to make any major decisions, like hiring new employees. Before, recruiters had no problem finding people because there was plenty of money to attract them. But now, things have changed, and recruiters are warning that it's going to be difficult moving forward.
What could help the industry?
One thing that could help the UK industry is if the US economy has a smooth transition. If things go well in the US, it could have a positive impact on the UK. However, if challenges persist, like high and persistent inflation, companies like Hays, PageGroup, and Robert Walters may continue to have a hard time. Basically, when the economy is uncertain, people are less likely to change jobs, especially if they aren't being offered good compensation.
So, right now, the recruitment industry in the UK is facing some problems. Companies are seeing a decline in profits because there are fewer job opportunities and people are hesitant to make changes. Hopefully, things will improve, but for now, it's a challenging time for the industry.
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