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- The cost-of-living crisis can reverse the 'great recession' triggered by the pandemic.
- More people are now willing to return to work as they need more money to purchase things due to high inflation.
The cost-of-living crisis is troubling millions of Brits, who have changed their spending habits as inflation is breaking decades-old records. Most things now cost significantly more than last year, and the prices are set to rise further in October when the energy bills rise again.
However, the cost-of-living crisis tends to reverse the "great resignation" triggered by the COVID-19 pandemic, as people now need more money than they thought. The ongoing economic trend, in which people are voluntarily resigning from their jobs en masse, is being led by employees aged over 50 years for various reasons.
According to a survey conducted by the Office for National Statistics (ONS) in August, almost three in four or 72% of people in their 50s would consider returning to work. This was a significant increase from February when 58% said they would mull returning to work.
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The survey also revealed the financial situation of employees who left their jobs during the pandemic. Among those surveyed, nearly a quarter said they could not afford an expense of £850 in case of an emergency, hinting at the situation caused by the high cost of living.
Kalkine Media® explores a few recruitment stocks that the information might impact.
Hays Plc (LON: HAS)
The recruitment service provider operates 256 offices across the world. The FTSE 250-listed company holds a market cap of £1,869.93 million and has a positive EPS of 0.04. Over the past 12 months, the share price has dipped by more than 34%, and the year-to-date return stands at 21.96%. The share was trading at GBX 114.10, down 0.70% as of 2:25 pm GMT+1 on Tuesday.
PageGroup Plc (LON: PAGE)
The British recruitment consultancy offers permanent, temporary, and contractual employment services and is a constituent of the FTSE 250 index. With a market capitalisation of £1,259.92 million, PAGE stock dipped over 41% over the past 12 months. The EPS stands at 0.37. Shares of the company were trading at GBX 380.40, down 0.78% as of 2:30 pm GMT+1 on 27 September.
Robert Walters Plc (LON: RWA)
Robert Walters offers recruitment services to multiple industries such as accounting & finance, engineering, etc. It holds a market cap of £371.17 million and is listed on the FTSE All-Share index. With an EPS of 0.46, the stock price has depreciated by 32.02%, and the year-to-date return is currently at -36.70%. Shares of the company were trading 6.94% lower at GBX 456.00 as of 2:36 pm GMT+1 on Tuesday.
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