European HR services prove resilient in M&A
HR Europe Spot On
Good news for the Eurozone in terms of jobs recently, with March seeing unemployment hit a record low. However, ongoing inflationary pressures and corresponding restrictive monetary policy, such as interest rate rises, mean that human resource management in Europe is set to face uncertainty for the near future.
2023 started with persistent inflationary pressures, which led central banks to hike interest rates up in an attempt to control price increases. Despite these headwinds and restrictive monetary policy, unemployment continued to fall to record lows as a result of tight labor markets, further aggravating the war for talent. Additionally, M&A activity in the HR sector is showing resilience, with transaction levels in the mid-market staying relatively high through the end of 2022. However, with economic forecasts becoming less optimistic, more and more players in HR services are seeing lower business activity, which in turn is being reflected in the sector’s M&A activity levels. Uncertainty is the key determining factor at play for the moment, and we expect it to govern M&A activity for the rest of the year.TOM VAN DE MEIRSSCHE, HUMAN RESOURCES EUROPE SPECIALIST, OAKLINS
In our latest Europe HR Spot On, we explore key themes such as business confidence and GDP across the continent, and recent statistics related to temporary work, job starters and leavers, and job vacancies. We also cover recent M&A activity, valuation trends and case studies of deals where Oaklins acted as exclusive advisor.
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