Hiring slows before election

BRITISH firms have scaled back hiring earlier than expected ahead of the General Election over the uncertain outcome, one of the country’s leading recruiters has warned.

Hays said its UK fees from placing candidates in interviews rose 8pc in the first three months of the year.

But growth slowed during February and March as firms trimmed back hiring earlier than expected – demonstrating the level of the uncertainty surrounding the vote.

Boss Alistair Cox said the firm had ‘seen more cautious decision-making among certain client and candidate segments as we get closer to the upcoming General Election’, particularly in the public sector.

Businesses facing uncertainty are less likely to hire new workers, the company said. Once the outcome of the vote is known, whichever party wins, it is likely that firms will begin recruiting again.

Recruitment firms have an insight into the mood across the workforce as they can tell how confident businesses and workers feel about the future.

Across the UK, Hays’ profits rose by more than 10pc in the North, Midlands and the East. Profits from the City rose 8pc compared to a year earlier.

Around a third of its profits come from Britain. Group profits rose 8pc across the three months.

Hays’ shares, which have risen 7pc in the past year, slipped 1.4p to 162.4p.

Investec analyst Andrew Gibb said: ‘Despite a slight slowdown in the UK, tied to an earlier-than-expected impact of the election hiring, Hays remains one of our preferred picks in the sector.’