Hays hit by financial services slowdown

Recruitment firm Hays followed its rivals by reporting on a 'challenging' environment, which was likely to remain unchanged in the near future.

The company said like-for-like fees grew 2% in the second quarter of 2012, with the firm getting a big boost from German activities.

It saw growth of 14% in Continental Europe and Rest of World, driven by a 25% jump in German fees.

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This off-set the UK and Ireland, where fees dropped 9%, and its Asia Pacific operation where fees were flat.

In the UK, private sector fees were down 14% due to increasingly difficult conditions across the market, but especially in the firm's banking and City-related specialisms.

In the Asia Pacific region Hays was hit by poor results from Hong Kong and Singapore, where financial services recruitment also predominates.

"Trading conditions in many markets became increasingly challenging through the quarter as concern about the global economy reduced confidence amongst our clients and candidates, particularly in the permanent recruitment markets," said Chief Executive Alistair Cox.

Hays is certainly not alone in this storm, with its competitors also feeling the squeeze.

Michael Page said the first half of the year had been tough and it expected more of the same in the second half, while Robert Walters saw a slow-down in Asia Pacific put a dent in its net fee income.