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Highlights
- Unemployment rate in the UK has reached its lowest level since 1974.
- The fall in unemployment was observed primarily because of the declining overall size of the workforce.
- The country's unemployment rate has dropped to 3.6% in the quarter to July, as per ONS.
UK unemployment rate has been dragged down to its lowest level since 1974. However, the fall in unemployment was observed primarily because of the declining overall size of the workforce. Additionally, other signs indicate that the country's jobs boom is gradually fading out, potentially increasing troubles related to inflation control for the Bank of England (BoE).
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According to the recent figures published by the Office for National Statistics (ONS), the country's unemployment rate has dropped to 3.6% in the quarter to July. According to a Reuters poll, economists expected this figure to hold at 3.8%. Even though the jobless rate has plunged, it is not a good sign for the economy, which is currently on the edge of falling into a recession.
UK economists have claimed that the job market is losing its momentum. In the three months to July, the economic inactivity rate has gone up by 0.4 percentage points, rising to 21.7%. This is its highest value since the quarter to January 2017.
Amid the falling unemployment rate, Kalkine Media explores three recruitment-related stocks.
Hays plc (LON: HAS)
The market cap of the recruitment and human resources services provider, Hays plc, stands at £1,977.14 million as of 14 September. The FTSE 250 company's one-year and YTD (year-to-date) returns stand at -28.35% and -17.92%, respectively. HAS shares were trading at GBX 120.00, plunging by 1.24%, at 9:09 AM (GMT+1) on Wednesday. The company's EPS currently stands at 0.04, and it has its P/E ratio at 17.47. The annual dividend yield offered by Hays stands at 1.8%.
Robert Walters plc (LON: RWA)
The market cap of the UK-based recruitment company, Robert Walters plc, stands at £374.46 million as of 14 September. The company's returns on a one-year and YTD basis stand at -31.18% and -36.36%, respectively. On Wednesday, RWA shares were trading at GBX 490.00 at 9:13 AM (GMT+1). The company's EPS currently stands at 0.46, and its P/E ratio holds at 9.88. The annual dividend yield offered by Robert Walters stands at 4.3%.
PageGroup plc (LON: PAGE)
The market cap of the specialist professional recruitment consultancy, PageGroup plc, stands at £1,365.08 million as of 14 September. The FTSE 250 company's returns on a one-year and YTD basis stand at -36.54% and -35.19%, respectively. PAGE shares were trading at GBX 410.60, tumbling by 1.16%, at 9:16 AM (GMT+1) on Wednesday. The company's EPS currently stands at 0.37, with its P/E ratio holding at 7.98. The annual dividend yield offered by Robert Walters stands at 3.8%.
