The recruitment earnings season always provides a decent insight into the state of the UK employment sector and next week will be no different.
Smaller cap firm Robert Walters PLC (LSE:RWA) and FTSE 250-listed constituent Hays PLC (LSE:HAS) will report their respective first-quarter and third-quarter results amid an undoubtedly tough time for City-based consultants.
Robert Walters’ profits collapsed 63% last year, with recruitment in London down 29%, “impacted by financial services and technology retrenchment”.
Chief executive Toby Fowlston warned that trading conditions in the new year have remained muted, with British employers advertising the fewest jobs in nearly three years in January.
Hays, meanwhile, issued a profit warning in January after reporting a 12% year-on-year decline in group fees.
The market is now weighing up whether the recruitment market has reached the trough.
Hays said in its interim earnings release that permanent hires had seen “solid job flow and activity levels in the new year”, but warned of “slower client and candidate decision-making, leading to longer time-to-hire”.
Hays itself has been paring down its workforce, with a 3-4% headcount reduction expected to be announced in next week’s earnings.
Robert Walters has its results out on Tuesday, 16 April, with Hays’ coming the day after.