(Reuters) -UK’s Hays said on Wednesday challenging market conditions for recruitment will likely persist into fiscal 2026, echoing industry concerns about a worsening job market driven by Europe’s economic struggles and an escalating global trade war.
The fallout from a change of government in Germany and persistent inflation in the UK, both major markets for Hays, has caused businesses to scale back hiring and discouraged individuals from switching jobs.
For the three months ended March 31, Hays saw a 9% fall in like-for-like net fees for its services, in line with market expectations. Its shares opened flat having fallen 13% since the beginning of 2025.
U.S. President Donald Trump’s sweeping tariffs against trade partners have rattled the job market further even as most of the levies have been paused for 90 days to allow nations time to negotiate lower trade barriers.
Hays’ warning follows that of its peers, PageGroup and Robert Walters, both of which have flagged significant uncertainties.
While PageGroup has withheld its financial forecast and implemented cost-cutting measures, Robert Walters reported limited visibility for its outlook and further tightening of its cost base.
Hays has also been reducing its cost base through restructuring measures and streamlining its management. The group targets savings of about 30 million pounds ($40 million) per annum by the end of fiscal year 2027.
For its fiscal year ending June, Hays, which primarily focuses on hiring people for white-collar roles, expects to post an operating profit in line with analysts’ consensus of 56.9 million pounds, according to a company compiled poll.
(Reporting by Raechel Thankam Job in Bengaluru; Editing by Sumana Nandy, Elaine Hardcastle)
