Recruiter Hays saw stocks soar today after he said a tight job market was creating huge demand for his services.
The UK permanent recruiting market is the “hottest” it has been since 2007, the Hays chief financial officer said, with pay increases of up to 20% now the norm in some industries.
Paul Venables told the Evening Standard: “For most businesses, the extent and speed of recovery from the pandemic has been much better than they might have expected.” Hays, which has 11,000 employees worldwide, including 2,500 in the UK, said net fees rose 41% in the first quarter.
Analysts expected growth of 36%. FTSE 250 shares gained 3.91p to 166.21p.
Domino’s today announced plans to hire an additional 8,000 people in the UK and Ireland, adding to its current total of 35,000. The new roles are largely delivery driver jobs and most are permanent. The hiring surge comes as the company reported sales up 9.8% to Â£ 375.8million in the 13 weeks leading up to September 26.
Managing Director Dominic Paul said: âOur supply chain continues to deliver exceptional results, despite well-publicized inflationary pressures and a tough job market … Although we see these pressures continuing through 2022 , our success in managing them to date gives us confidence. that our growth momentum will be sustained.
Hays’ tight labor market is causing problems elsewhere. National Express said it was managing to “successfully mitigate the financial impact of ongoing driver shortages,” but warned it would have to increase driver wages by 5% next year to retain staff. Insufficient shipping containers and parts, as well as personnel.
Defense contractor Qinetiq saw its inventory drop nearly 9% today after saying spare parts supply issues could lead to a loss in value of up to Â£ 15million.
Poundland owner PepCo said he is seeing “a significant increase in shipping costs” and said: “The environment in which we operate will remain difficult for some time.”
Updates around the corporate world all reflect the unusual state of the global economy, facing increasing demand as the pandemic wears off.
A mismatch between the supply of goods and workers and the demand for both creates huge problems for some businesses and opportunities for others. The imbalance threatens to cause higher wages and shortages this Christmas.
US President Joe Biden and British Chancellor Rishi Sunak were both forced to reassure citizens about the strength of supply chains this week.