UK Unemployment Hurts Recruiters

Amongst this week's main movers were recruitment firms, dropping following the latest UK labour market statistics, but all is not necessarily as it seems

Rodney Hobson 14 August, 2015 | 12:58PM
Facebook Twitter LinkedIn

Just the Job

Shares in recruitment companies Michael Page (MPI), Robert Walters (RWA) and Hays (HAS) took a sharp dip midweek after the latest employment figures. That reaction was overdone and it didn’t take Page long to drive the message home.

Statistics can be tricky things and it is very easy to distort the picture. Hence the general view that you should not take too much notice of one month’s figures because any aberration may be just a blip. However, news that unemployment had risen for a second consecutive month in June brought an attack of nerves. Could the UK economic recovery be hitting the buffers?

A closer look at the figures suggests no. These are quarterly rolling figures, a method of calculation that brings its own distortion. It looks as if the jobless rise came in April and May and that unemployment actually fell in June, so it is likely that there was a lull in recruitment ahead of the election and a picking up of the slack since.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Facebook Twitter LinkedIn

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Balfour Beatty PLC257.20 GBX-0.16
Hays PLC164.00 GBX0.99
PageGroup PLC661.00 GBX1.15
Robert Walters PLC800.00 GBX0.00

About Author

Rodney Hobson

Rodney Hobson  is a columnist for and author of several investing books, including The Dividend Investor and How to Build a Share Portfolio.