- The new permanent job roles in the UK witnessed the second-fastest salary growth in February, as per the latest survey by REC and KPMG.
- The sharpest rise in permanent hiring activity was witnessed in North England, while London recorded the highest number of temporary placements.
- The positive hiring trend across industries is encouraging for the UK economy and recruitment companies like Hays Plc, Pagegroup Plc, and Staffline Group.
The new permanent job roles in the UK witnessed second-fastest salary growth in February. According to the survey by Recruitment and Employment Confederation (REC), a professional body for UK-based recruitment businesses along with accountancy firm KPMG, the overall hiring across different industry groups continued to rise in February 2022. However, there was a drop in permanent job role hiring, which declined to 65.3 from 66.8 in January 2022. The survey result is based on responses received from 400 UK-based consultancies.
The sharpest rise in permanent hiring activity was witnessed in North England. The IT & technology sector took the lead in hiring activities during the period, while the Hotel & Catering segment was a top sector to hire temporary staff. Moreover, London recorded the highest number of temporary placements.
However, the number of candidates available for a particular job role has dropped due to uncertainty created by the pandemic. As a result of shortfall, the negotiating power has shifted to employees demanding higher salaries amid surging inflation and cost of living expenses in the UK.
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The positive hiring trend across industries is encouraging for the UK economy and companies operating in the recruitment consultancy business. Let us look at 3 FTSE listed recruitment stocks that could be in focus today:
Hays Plc (LON: HAS)
FTSE250 listed company provides recruitment consultancy services in several countries. It offers permanent and temporary staffing services to its clients.
Hays reported excellent growth in its recruitment business in 2021 because of the rise in hiring activity after the Covid-19 pandemic. Its total net fees collection rose by 39% to £565.3 million, while its operating profit shot up by 327% to £101.6 million for the six months ended 31 December 2021.
Hays Plc currently trades at GBX 121.40, down by 2.33% on 10 March 2022 at 11:15 am GMT+1, with a market cap of £2,073 million. The stock’s current dividend yield stands at 3.1%.
Pagegroup Plc (LON: PAGE)
The company provides recruitment consultancy services in the UK and other European countries. It offers executive search and staffing services.
For the year ended 31 December 2021, Pagegroup’s total revenue grew by 26% to £1,643.7 million, driven by a gain in the market share after the post-pandemic recovery. Its total operating profit was £168.5 million during the period.
Pagegroup Plc currently trades at GBX 468.20, down by 0.34% on 10 March 2022 at 11:15 am GMT+1, with a market cap of £1,543 million. The current dividend yield of the stock stands at 3.5%.
Staffline Group Plc (LON: STAF)
Staffline is a leading UK-based recruitment and training service provider. It offers staffing solutions to more than 450 client sites and across different industries segments.
The company’s business witnessed positive momentum in 2021, with total revenue of £942.7 million and an underlying operating profit of £10 million for the year ended 31 December 2021.
Staffline Group Plc currently trades at GBX 44, down by 2.22% on 10 March 2022 at 10:30 am GMT+1, with a market cap of £74.60 million.
Note: The above content constitutes a very preliminary observation or view based on industry trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.