Recruiter’s growth has been cut in half

Apr 11 2008 by Peter McCusker, The Journal

RECRUITMENT consultant Hays said lower demand for City and property jobs had cut growth in its UK business by more than half.

The Guildford-based firm’s like-for-like income growth in the UK eased to 5% in three months to March 31, compared with 11% in the previous quarter.

The slowdown echoed comments from rival Michael Page earlier this week over faltering banking and related sectors hitting its domestic business. Hays said growth in the construction and property sector slowed, “whilst demand in City related activities weakened during the quarter”.

But it added that excellent growth in Asia and Continental Europe had partially offset the weaker UK performance.

The company achieved an overall like-for-like income growth of 17% in the period, although this was below the previous quarter’s 23%.

“Whilst mindful of the current economic uncertainty, the board remains confident in its outlook for the year,” Hays added.