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Thursday 15 October 2020

UK market gets uglier for recruiter Hays

logoThe UK market got even uglier for UK-headquartered, international recruitment giant, Hays, in the three months to 30th September (FY21 Q1). Net fee income (gross profit) in UK&I crashed 34% - the steepest decline of its key regions – with private sector bearing most of the brunt, down 40%, vs a 20% decline in public sector. Group NFI fell by 29%.

Even IT recruitment fees fell by 12%. This was the one speciality area that had just kept its head above water in the UK last FY (see IT remains sole growth market for Hays’ UK business).

UK&I now represents just 21% of group NFI, down from 23% in FY20. CEO Alistair Cox alluded to some improvement in fees from permanent recruitment as lockdown restrictions eased, but one can only assume that will be a very short recovery as the nation returns to stricter COVID-19 regulations.

Of course, Hays is not alone in its suffering. STEM-focused multi-brand recruiter SThree suffered a 28% decline in UK NFI last quarter, with the market remaining ‘a perennial challenge” according to CEO Mark Dorman (see *UKHotViewsExtra* SThree and the ‘perennial challenge’).

This really is a grim time for the UK recruitment market. Unfortunately, it is likely to get even grimmer.

Posted by: Anthony Miller

Tags: recruitment  

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