Recruiters slammed by a ‘cocktail of confusion’
SALARIES are booming and unemployment levels are at 45-year lows – but a double whammy of profit warnings from recruiters show there is more to the jobs market than meets the eye.
People are staying put and becoming less inclined to switch jobs as political and economic uncertainty bubbles away in the background, according to Page
Group and Robert Walters. Page pointed the finger at challenging conditions in the UK, France and China as it told the City it now expects profits to be between £140m to £150m this year, down from earlier estimates of £156.5m to £168m.
Profits rose 4.2pc in the three months to September 30. But in the UK, where employees are sitting tight awaiting the outcome of Brexit, profits slid 4.1pc.
And in China, which is being buffeted by trade wars and an economic slowdown, profits plunged 24pc.
Rival Robert Walters said its gross profit fell 11pc to £24.8m in the same three-month period.
Its namesake boss, Robert Walters, blamed a ‘cocktail of confusion’ amid US-China trade war tensions, a US-Europe trade war threat, Hong Kong riots and Brexit uncertainty for a new forecast that its full-year profits will be flat on the previous year.
Page fell 11.9pc, or 49.8p, to 367.8p, while Robert Walters dipped 5.5pc, or 27p, to 463p. Rival recruiter Hays fell 2.8pc, or 3.9p, to 138.1p. Gold miners Polymetal and Fresnillo were among the Footsie’s biggest risers as the price of spot gold – or what you would pay to buy gold instantly – rose 0.3pc to $1505.8 an ounce. Polymetal rose 2.8pc, or 31.5p, to 1175p, while Mexico-focused Fresnillo closed 2.1pc higher, up 14p, to 688.8p.
Gold was on the up as traders fretted ahead of today’s trade talks between the US and China.
The FTSE 100 finished 0.76pc lower, down 54.73 points, to 7143.15, dragged down by the London Stock Exchange Group after the Hong Kong Stock Exchange dropped its £32bn bid for the bourse.
The FTSE 250 dipped 1.13pc, or 219.34 points, to 19,200.90. Electronic parts distributor
Electrocomponents jumped 1.8pc, or 11p, to 610.6p, after it said revenue grew 5pc in the six months to September 30, when compared with the same period of 2018. Former retail investor favourite
Sirius Minerals fell 0.3pc, or 0.01p, to 3.8p. It came after boss Chris Fraser slammed shareholder chat forums, and said they should be shut down.
Mid-cap building materials supplier SIG tracked lower after Canaccord lowered its target price from 133p to 107p. It followed SIG’s profit warning on Monday, which sent shares tumbling almost 16pc. Stock closed down 1.1pc, or 1.15p, to 99.35p. Shopping centre owner Intu
Properties lost a fifth of its value despite not putting out any news or announcements.
The drop may have been caused by PwC figures which showed consumer confidence at its lowest level for more than five years, in a sign that the High Street could face even more gloom and shoppers may tighten their purse strings ahead of Christmas. Shares fell 18.9pc, or 8.41p, to 36.12p.
Crossword Cybersecurity rose after it signed a two-year contract with a chemicals firm for its flagship product Rizikon Assurance, which assesses how risky each of its strategic suppliers are. Shares in Crossword, chaired by former MI6 head Sir Richard Dearlove, rose 1.2pc, or 5p, to 410p.
Yougov slid 1.5pc lower, down 8p, to 530p, despite hiking its dividend by a third to 4p and annual profit rising 65pc to £19.5m.