by HRHQ Editorial Team
Recruitment firm Hays forecast first half profits would be lower than the prior six-month period and the UK firm has warned that hiring market conditions could remain challenging in the near term.
Recruitment firms have been battling sluggish hiring market conditions for the past year amid high interest rates and lower unemployment levels.
Hays, which recruits for companies in the accountancy and technology sectors, among others, saw a one-fifth drop in its UK fees over the three months to 30 September.
Germany, the largest single market for Hays, saw a 13% decline in net fees. Technology, the largest sector in the country, saw a 15% decline. Australia, where Hays has significant workforces, reported a 14% fee reduction.
In August, Hays said it was slashing costs by around another £30m after seeing annual profits almost wiped out for the year. The poor results come amid a global pullback in hiring, which has already pushed Hays to trim its 11,000-strong army of consultants by about a quarter over the last 18 months.
Chief executive Dirk Hahn said the trading reflected “tough market conditions, particularly the longer time to hire and low levels of confidence which we expect to continue”.
Earlier this week a Recruitment and Employment Confederation (REC) survey showed the permanent job market in Britain extended a two-year downturn in September, although the drop in hiring was slower on a monthly basis.
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