- Group net fee income down 12% in Q3
- Sees no recovery in client, candidate sentiment until 2025
- Hiring weakens ahead of UK budget
Oct 15 (Reuters) - British recruiter Robert Walters on Tuesday said both job seekers and employers in the UK paused activity ahead of the new government's maiden budget at the end of the month, where details on employment legislation and fiscal measures are expected.
"All evidence would point to a possible increase in national insurance. So...there is a cost impact, a tax impact potentially, so there's still quite a bit there in terms of what employers are thinking about," CEO Toby Fowlston told Reuters.
Finance minister Rachel Reeves has declined to rule out raising the national insurance taxes that businesses pay in her first budget on Oct. 30, as the government looks for ways to fill what it says is a 22 billion-pound black hole in the public finances.
Other legislation including an employment rights bill and higher minimum wages have also had an impact on the UK jobs market, Fowlston said.
Official data on Tuesday showed British pay grew at its slowest pace in more than two years in the three months to August and vacancies fell again.
Robert Walters, which specialises in hiring for the legal, accountancy and technology sectors, said it did not anticipate any signs of recovery in the hiring market until 2025, mirroring comments by peers Hays and PageGroup.
However, it expects to be profitable by the end of the year despite challenging hiring conditions after swinging to a half-year loss in August.
Group net fees for the three-month period to Sept. 30 fell 12% on a constant currency basis to 79.9 million pounds ($104.2 million).
Hays and PageGroup have both warned of weak hiring market conditions in the near term while reporting a fall in their quarterly net fees.
Globally, recruitment processes have been delayed as candidates avoid the risk of switching jobs and employers remain hesitant to hire more amid inflationary pressures and a high-interest-rate environment.
($1 = 0.7668 pounds)
Reporting by Prerna Bedi in Bengaluru; Editing by Sherry Jacob-Phillips, Kirsten Donovan
Source: Reuters