- The UK-based companies hired permanent staff at their slowest pace in the month of March as firms struggled to get the right qualified candidate to fill the positions.
- The unemployment rate in the UK dropped to 3.9% for the three months to January 2022, while the number of jobs vaccines increased to more than 1.3 million as of February 2022.
According to the latest survey by the Recruitment and Employment Confederation (REC), an organisational body for the recruitment industry, the UK-based companies hired permanent staff at their slowest pace in the month of March as firms struggled to get the right qualified candidates to fill the positions. The slowdown in hiring comes despite a record rise in employee pay scale and an increase in the number of job vaccines.
The unemployment rate in the UK dropped to 3.9% for the three months to January 2022, the lowest in the last two years, while the number of new jobs vaccines increased to more than 1.3 million as of February 2022 as per the data released by the Office for National Statistics (ONS). The uncertainty related to the Covid-19 pandemic, fewer workers from European Union has reduced the number of job applicants. At the same time, the post-pandemic economic recovery across segments has led to a rise in vaccines.
Recruitment and staffing service providers play an integral part in bridging this gap and helping companies hire a skilled workforce. Let us look at FTSE listed recruitment companies and their investment prospects:
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Hays Plc (LON: HAS)
FTSE250 listed recruitment service providers offer permanent and temporary staff to various sectors like construction, finance, and technology. It has major operations in Australia, the United Kingdom, and Germany. The company’s business reported robust growth for the six months ended 31 December 2021. Its total fees collection increased by 34% to £565.3 million (H1 FY20: £422.8 million), driven mainly by the excellent growth across different regions and productivity improvement.
Hays Plc closed at GBX 120.40 on 08 April 2022, with a market cap of £2,005.52 million.
Robert Walters Plc (LON: RWA)
The company provides professional recruitment services to different industries like engineering, accounting & finance, and others. The company reported a 27% rise in net fee income to £98.4 million in the first quarter ended 31 March 2022 because of upbeat recruitment activity and growth in net fee income in 11 out of 13 markets.
Robert Walters Plc closed at GBX 690 on 08 April 2022, with a market cap of £530.41 million.
Sthree Plc (LON: STEM)
The UK-based company provides permanent and contract staffing solutions under the Computer Futures, Real Staffing Group, and Madison Black brands. In the first quarter ended on 28 February 2022, the net fees increased by 29%, driven by high new placement activities and execution of business strategies.
Sthree Plc currently closed at GBX 382.50 on 08 April 2022, with a market cap of £511.14 million.