Seek’s shares dropped over 7% off the back of its annual earnings update. It suffered a 17% drop in sales revenue, which resulted in a $101 million loss.
👉 Background: Seek is the online employment marketplace that started back in 1997 and has operations in Australia, New Zealand, China, Hong Hong, Singapore…just to name a few.
👉 What happened: Seek’s shares dropped over 7% off the back of its annual earnings update. It suffered a 17% drop in sales revenue, which resulted in a $101 million loss.
👉 What else: Job ads on Seek’s recruitment platform dipped by 20% - so it seems like this not-so-great performance may not be entirely Seek’s doing and, it may have more to do with macroeconomic conditions than Seek’s operating decisions.
💡When the economy quakes, employment and recruitment businesses feel the aftershocks.
💡The performance of jobs platforms like Seek is directly linked to the health of the labour market. The unemployment rate is currently sitting at 4.1%, a jump from 12 months ago, when the unemployment rate was 3.6% — so it’s a clear sign that the economy is slowing down.
💡When economies slow down, companies tend to reduce or freeze hiring so there are fewer jobs being advertised, impacting companies like Seek.
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