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Recruiters profiting from exceptional labour market

Wage inflation is concern for lots of business but for recruiters it just means higher profits.
Recruiters profiting from exceptional labour market
  • Recent trading updates show a jump in profitability
  • Recruiters offer a good way to hedge against wage inflation

Tight labour markets are a mystery and a concern for businesses across the world. In recently released ONS data, total job vacancies in the UK were 1.10m, the highest on record but total hours worked per week were still below pre-pandemic levels. This data paints a disturbing picture of the UK but difficulty filling roles is a global phenomenon. Businesses need workers and are struggling to find them, which will lead to a rise in wages and a reduction in earnings. Not good news, unless you are a recruitment consultant.

PageGroup (PAGE), Hays (HAS) and Robert Walters (RWA) have all posted strong trading updates recently off the back of an exceptional labour market. “This is the hottest market for permanent workers I have seen since I started here in 2007, particularly technology, marketing and life science, which are well above pre-pandemic levels,” said Hays finance director Paul Venables.

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