Recruiters Hays and Page in favour as white collar activity revives

PageGroup PLC (LON:PAGE) and Hays PLC (LON:HAS) are in favour at Jefferies on “increasing evidence that strong white-collar momentum has persisted”.

Forecasts for both recruiters were moved to the top of the broker’s range ahead of their second-quarter results in early July.

Analysts at the investment bank said their forecasts are 19% above the full-year consensus for Page and 8% for Hays and have  ‘buy’ ratings for both companies, even though revenues are still expected to be 10%-15% below the 2019 peak.

Tracking job search ads on indeed.com, Jefferies said activity has yet to revive in the 25 US States as generous unemployment insurance has created a disincentive to participate in the labour market and some are hesitant to return to work due to COVID-19 risk.

Job ads growth in the UK was deemed “strong but choppy”, though it remained “subdued” in France with Germany and Netherlands improving.

Hays dipped 1% to 164.90p while PageGroup remained flat at 585p.

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