Hays feels pressure from construction downturn

Recruitment consultant Hays today said fee growth slowed to 4% in the UK and Ireland after a “difficult quarter” in the construction and property sector.

The Guildford-based firm generates around a quarter of its UK and Ireland business from the building industry, which is cutting jobs in response to one of the worst downturns in memory.

Continued financial sector turmoil also saw demand for City-related posts remain “subdued” during the period, Hays said.

The group said net fees growth in the UK and Ireland, which represents more than half of total income, slowed to 4% during its final quarter to June 30. In the previous quarter the region’s net fees grew by 5%, with 13% growth during the previous six months.

Chief executive Alistair Cox said: “We are seeing signs of wider global economic issues starting to impact our permanent placement markets, particularly in the UK.”

Hays said the number of its UK and Ireland consultant numbers fell from 3,355 at the end of December to around 3,100 at June 30, but this was through “natural attrition” rather than job cuts.