Recruitment company Hays has today forecast first-half pre-exceptional operating profit of about £60m, below market expectations, hurt by hiring slowdown at the end of the December quarter.
Some of the top UK-listed recruiters in recent times have highlighted the challenging market conditions, with job candidates avoiding the risk of switching jobs and employers offering lower salary hikes amid macroeconomic uncertainties.
"Overall market conditions became increasingly challenging through the quarter, including a clear slowdown in most markets in December, notably in our Perm businesses as client and candidate decision-making slowed," CEO Dirk Hahn said in a trading statement.
Hays, which in October had flagged a persistent weakness in hiring permanent workers and weak demand in China, said group fees dropped 10% in the second quarter, weighed down by a "more difficult" December, where fees fell by 15%.
The company said it expected to incur an exceptional restructuring charge in the first half of its 2024 fiscal of about £12m related to cost-saving measures.
