Recruiter Hays hit by hiring slump in UK and Germany
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Hays has become the latest British recruiter to report a fees slump following a hiring downturn across the UK and Germany. The London-based business revealed its like-for-like net fees fell by 15 per cent in the three months to December compared to the same period the previous year.
It recorded a 21 per cent fall in permanent hiring fees, a 10 per cent decline in temporary fees, and double-digit percentage drops in many of its core territories. Net fees decreased by 13 per cent in Germany, where the economy has just contracted for the second year running due to lower exports, rising competition from China and soaring energy prices.
Hays noted its clients were taking longer to employ people on a full-time basis, while the struggling German automotive industry was impacting temporary hires. Meanwhile, fees plunged by 14 per cent in the British Isles amidst much weaker trade in London, the North of England and the Republic of Ireland.
Trading difficulties: Hays has become the latest British recruiter to report a poorer result following a hiring downturn across the UK and Germany. Outside Europe, the FTSE 250 firm posted falls of 14 per cent across Australia and New Zealand, 26 per cent in Latin America, and 38 per cent in Hong Kong.
Hays' trading update follows similar announcements by fellow recruiters PageGroup and Robert Walters earlier this week. Both companies declared their gross profits shrank in the fourth quarter of 2024 due to sluggish performances in the UK and Germany, which they blamed on subdued client and candidate confidence.
