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Hayes has become the latest UK recruiting company to warn of economic uncertainty and difficult job markets.
Commenting alongside the latest quarterly results for the FTSE 250 Group, Chief Financial Officer James Hilton added, “We know where (the economy) is going from here. He added, “The world feels fragile.”
UK recruiters feel the knock-on effect of national insurance contributions to businesses and the increasing escalating world trade war. In a February survey, they reported the toughest conditions in the job market since the pandemic.
Hayes said Wednesday that net fee revenue from employment fell 9% on a similar basis in the three months leading up to the end of March compared to the same period last year. Toll revenues for the group’s two largest markets (UK and Ireland and Germany) fell by 13% and 9%, respectively. France fell 19%.
Fee revenue from temporary roles, which accounts for 62% of total placements, was 6% lower in the quarter than a year ago. Permanent employment fee revenue, which accounts for the remaining 38%, fell by 14%.
Hayes said the challenging conditions are likely to last until 2026. The group’s stocks declined 2% in morning trading, a 13% decline since the beginning of the year, he said.
“It’s been a pretty rough recruitment market for the past two years,” Hilton said. “These are challenging markets and we see it across Europe,” he added, saying it’s difficult for slowing the automotive sector to keep jobs in France and Germany as well.
Hayes results follow those of Rivals PageGroup and Robert Walters. On Tuesday, Robert Walters reported an unclear outlook and said he would cut costs.
“We’re looking forward to seeing you in the future,” said Toby Fauston, CEO of Robert Walters. “The weak sentiment seen in Europe in the second half of 2024 continues. In recent years, increasing uncertainty about global trade flows due to tariffs is likely to result in even more headwinds.”
