Recruiter Robert Walters sounds profit alarm on recession chilling UK jobs market
Jitters over the UK economy tumbling into a tough recession is likely to trigger a hiring slow down, sparking recruiter Robert Walters to today warn its full year profits will drop below expectations.
The alert sent the firm’s London-listed shares down more than three per cent today, clawing back some ground after shedding around nine per cent during early exchanges.
Robert Walters had ridden a wave of hiring activity after Covid-19 restrictions were scrapped. Worker shortages also steered companies toward using recruitment specialists to fill roles quickly.
However, a souring economic outlook has made firms more cautious, reducing the need to enlist recruitment consultants.
Analysts now reckon the UK is in the early stages of a drawn out recession.
“The global macroeconomic backdrop became increasingly uncertain as the (fourth) quarter progressed, resulting in a softening of recruitment activity levels across many of the group’s markets,” Robert Walters, chief executive of his namesake firm, said.
Investors ditched rival recruiters Hays and Page Group today, sending their respective shares around six per cent lower.
US tech firms hobbled by their share prices collapsing in response to the Federal Reserve raising interest rates aggressively are likely to shun taking on more workers, again dragging down Robert Walters’s bottom line.
Facebook owner Meta, Salesforce, Twitter and other tech darlings have trimmed workforces in response to their tumbling shares.
Today, online retailer Amazon said it is shutting three warehouses in the UK, leading to more than 1,000 job losses.
The London-based recruiter said strong activity in Europe, led by Germany, lifted its performance.
Robert Walters was founded in 1985 and listed on the London Stock Exchange in 1996.
Although the company finds workers for a bunch of sectors, it is mainly focusing on sourcing employees for City firms.