Hays Plc (LON:HAYS) Earnings Comment
British recruitment companies are basking in a purple patch at the moment, largely thanks to their expansion into faster-growing overseas markets.
Germany now accounts for the biggest chunk of Hays' operating profits and the outlook for its business there remains bright.
Strong domestic consumption in Germany is keeping unemployment low and helping to buffer the local economy from simmering global trade tensions.
Labour markets elsewhere remain tight, particularly in the US, and Hays has even boosted its operating profits in the more sluggish UK market by 13%.
Brexit uncertainty will no doubt be making companies more reluctant to hire, and employees reluctant to jump ship. But evidence is mounting that some European nationals living in the UK have already packed their bags, creating skills gaps that force employers into hiring.
The need for British employers to consult recruitment firms will only intensify, should a hard Brexit trigger a mass exodus of skilled labour.
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