The UK’s tight labour market may not do much to ease inflation, but it’s paying dividends for the recruitment industry. Strong demand for workers in finance, law and fintech helped recruiter Robert Walters to what it said was a record year. The government, of course, would rather the market loosened up. Getting more people aged 50 to 64 back to work is expected to be a key part of Jeremy Hunt’s budget next week, amid claims inactivity is holding back the economy. Measures under consideration i
(Bloomberg) — The UK’s tight labour market may not do much to ease inflation, but it’s paying dividends for the recruitment industry. Strong demand for workers in finance, law and fintech helped recruiter Robert Walters to what it said was a record year. The government, of course, would rather the market loosened up. Getting more people aged 50 to 64 back to work is expected to be a key part of Jeremy Hunt’s budget next week, amid claims inactivity is holding back the economy. Measures under consideration include changes to pensions, childcare and opportunities to retrain.
Here’s the key business news from London this morning:
In the City
Robert Walters Plc: The recruiter delivered a record performance in 2022 as tight labor markets led to more competition for jobs across the world and wages rose to keep up with inflation.
- The company’s CEO Robert Walters decided to retire after founding the business in 1985, saying “it has been an honour and privilege” to lead the company
FirstGroup Plc: The bus and rail operator boosted its expectations for full-year results due on June 8 amid stronger demand from its open access rail services and higher usage on its buses.
- Lumo and Hull Trains experienced stronger than expected passenger demand throughout the colder months
Berkeley Group Holdings Plc: The homebuilder says build cost inflation is showing early signs of moderating, although it will adopt a cautious approach to releasing new phases until the market calms down
- The company says sales pricing from November to February has remained firm
In Westminster
As Britain battles rip-roaring inflation, fueled by a shortage of staff, one cohort of workers is notably missing in action from the labour force — the range of 50–64-year-olds. The trend is limiting the UK’s growth potential, drying up tax revenues and threatening to add to a pensions time bomb as a bulge of Baby Boomers retires from the workforce. Chancellor Jeremy Hunt is likely to address the issue in his budget on March 15.
UK homes will face higher energy bills next year even if the government extends support for consumers, according to a report by Energy and Climate Intelligence Unit think tank.
In Case You Missed It
Vodafone Group Plc and Three UK are putting the final touches on a deal to create Britain’s largest mobile operator and may announce details of the tie-up as soon as this month, people with knowledge of the matter told Bloomberg.
Petroleo Brasileiro SA Chief Executive Officer Jean Paul Prates and Shell Plc’s Wael Sawan agreed to seek opportunities in the upstream business. Under a five-year memorandum signed in Houston on Thursday, during the CERAWeek , the companies also pledged to “establish projects to preserve biodiversity” with an aim to selling carbon-offset credits.
The Bank of England plans to cut spending on climate change work and redirect the money to core functions because of rising pressures on its costs. Climate programs will slip lower on the central bank’s agenda so officials can focus more on the core operations such as financial stability, markets and a digital currency, according to a person with knowledge of the situation.
Looking Ahead
Direct Line Insurance Group Plc will be out with results on Monday morning. The auto and home insurer’s shares slumped after a profit warning in January — and haven’t recovered since. Direct Line also canceled its final dividend for 2022 and a payout resumption this year “shouldn’t be taken for granted,” according to Bloomberg Intelligence.
Next week will also see results from food-delivery firm Deliveroo Plc, the world’s biggest inter-dealer broker TP ICAP Group Plc, and pest control company Rentokil Initial Plc.
On the political front, Jeremy Hunt’s budget will take centre stage. Hunt is considering giving British firms extra tax relief on investment spending, people familiar with the matter told Bloomberg. Here’s what else is expected to be announced Wednesday.
For a more considered take on the UK’s economic and financial news, sign up to Money Distilled with John Stepek.
–With assistance from Leonard Kehnscherper.
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