YOU can have seen the headlines – from “£150k beginning salaries for graduates” and “Corporations combating for employees” to “Lidl to turn into UK’s highest-paying grocery store”. We’re within the midst of a jobs increase.
And that may solely be excellent information for the UK’s recruitment giants; companies like Hays (HAS), which is because of give its newest buying and selling replace on Tuesday.
But it surely hasn’t all the time been like this. Again in 2020 when the pandemic first took maintain, income at recruitment companies crashed as job hires dried up and every thing was placed on maintain.
For buyers the ‘new regular’ again then noticed employees furloughed, firms cautious and recruitment freezes in place, as the whole world watched and waited to see how the pandemic would play out.
When Hays itself was slicing jobs – a thousand of them – and warning that its then-full yr income would virtually halve as there have been “no indicators but” of firms restarting hiring as lockdowns ease internationally, you knew issues have been dangerous. The truth that dividends have been suspended and shares fell, added to the ache for buyers.
However then the nice unlocking arrived in the summertime of 2021 and people document job vacancies have been one thing to be celebrated by the recruitment companies, like Hays, wanting to get employees on payrolls and fee within the financial institution.
Between September and November 2021 a document 1.22 million jobs have been begging to be crammed and 2021 has turned out to be a document yr, in any case, for the recruiters.
Hays rival Robert Walters (RWA) has since reported a document December efficiency, with fourth-quarter web charge revenue a 3rd increased than final yr and PageGroup (PAGE) has proclaimed 2021 a “document yr”; bolstered by a robust remaining quarter. PageGroup’s charge earner headcount is now the identical as earlier than the pandemic and full-year working revenue is anticipated to be marginally forward of its already boosted steering of £165 million.
The query now although is, most likely, whether or not the job market can afford to maintain booming? Robert Walters is adamant it should, however PageGroup, again on the half-year outcomes in the summertime, admitted it was unclear whether or not improved efficiency was the results of “pent-up provide and demand, or a sustainable development”.
Possibly these document salaries and the race to snap up employees at any price will finally put the brakes on the roles market. Or perhaps the thrivers and survivors of the pandemic will fall wanting the quantity wanted to essentially increase the coffers on the recruitment companies. Possibly Hays will shed some extra gentle on the place we’re at, proper now, and the form of issues to come back, on Tuesday.
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