Hays reports weaker jobs market as permanent hiring fees fall

Summarised from 2 outlets · Updated 12 Oct, 12:30 · Archive

Recruitment agency Hays said net fees fell 3% in its first quarter as permanent hiring weakened.

Hays, one of Europe's biggest recruitment agencies, reported net fees fell 3% on a like-for-like basis in its first quarter to September 30. The decline was largely driven by a 7% fall in fees for permanent hiring, with the UK and Ireland seeing a 5% fall overall and a 9% tumble in permanent role hiring.

Chief executive Mark Dearnley said the permanent hiring market remained 'mixed' amid strong growth in North America and continued fragility in Northern Europe. Investment director Russ Mould at AJ Bell said the results showed the jobs market was 'as tough as ever, particularly for permanent roles', suggesting 'companies lack confidence and don't want to invest in their business for growth'.

Hays shares fell around 7% following the trading update on Monday. Over the past year, the FTSE 250 listed company closed operations in Thailand and Mexico and divested those in the Czech Republic, Denmark, Hungary, Luxembourg, Romania and Sweden. The firm said it was in 'advanced discussions' over operations in Belgium, Brazil, Greater China, Malaysia, the Netherlands, Singapore and the United Arab Emirates as it focuses on its core 16 markets.

How it is being reported

• Hays sees weakening permanent jobs market keep trading under pressureThe London-based firm, which is one of Europe’s biggest recruitment agencies, said its net fees were down 3% for the quarter ending September 30.Evening Standard · 12 Oct, 11:57
• Hays sees weakening permanent jobs market keep trading under pressureThe London-based firm, which is one of Europe’s biggest recruitment agencies, said its net fees were down 3% for the quarter ending September 30.Independent Business · 12 Oct, 11:57

In this story: Hays · Mark Dearnley · North America · Northern Europe · UK · Ireland

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