LONDON, June 14 (Reuters) - Shares in Europe's recruitment companies slumped on Wednesday after a profit warning by London-listed Robert Walters signaled more pain ahead for the hiring industry.
Robert Walters shares slumped by almost a fifth in early London trading to their lowest since November 2020. They were last down 13%, heading for their biggest daily decline since the start of COVID lockdown measures in March 2020.
Shares in rivals Hays and Pagegroup slid 6% and 8%, respectively.
Robert Walters said its profit for fiscal 2023 would be "significantly lower than current market expectations" as reduced candidate confidence and lengthening time to hire seen in the second half of previous fiscal year had not improved.
The company's net fee income for the first two months of the second quarter was down by 10% year-on-year on a constant currency basis.
"The Robert Walters profit warning provides an early indication of sector headwinds," analysts at Jefferies in a note. "Weaker momentum is driven by financial services, slower China recovery and sustained labour shedding in big tech," they said.
Recruiters are battling a slowdown as high inflation, recession fears and a slower than hoped for recovery in China have forced companies globally to cut jobs or freeze hiring.
Robert Walters (RWA)
Hays (HAS)