European recruitment shares fell as softer hiring at Robert Walters Plc offered a fresh warning on the health of the global economy.
(Bloomberg) — European recruitment shares fell as softer hiring at Robert Walters Plc offered a fresh warning on the health of the global economy.
The London-based staffing company flagged weaker activity across several markets due to an “increasingly uncertain” macroeconomic backdrop. Its shares tumbled as much as 11% — the most since March last year — while UK firms PageGroup Plc and Hays Plc fell 7.4% and 5.8%, respectively.
The red flags at Robert Walters are another sign of an expected recession in many countries, spurred by the cost-of-living crisis and soaring interest rates as central bankers try to control inflation. The International Monetary Fund has warned that more than a third of the global economy is set to contract.
Demand for permanent staff in the UK slid for a third month in December, with vacancies rising at the slowest pace in almost two years, according to the UK’s Recruitment & Employment Confederation.
Fourth-quarter net fee income at Robert Walters’ UK recruitment process outsourcing unit, Resource Solutions, was down 6% year-on-year, the firm said in a statement. The US business also saw a “significant decline” amid “tough market conditions,” while Australia and Japan were also weaker. Net fee income in China slumped 24% due to Covid-19 restrictions, the group added.
Continental peers like Switzerland’s Adecco Group AG and Dutch firm Randstad NV also retreated.
(Updates share prices.)
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.
