Hays has best year since 2009 as employers switch from temps to permanent staff

BRITAIN’S booming jobs market has helped Hays, the UK’s biggest recruiter, post an annual rise in profits despite a hit from currency swings.

Hays, which often acts as a barometer for the health of the economy, said it had seen a strong recovery across all regions, with most of its job specialisms showing net fee growth.

Chief executive Alistair Cox said it had been the best year since 2009, as net fees grew in all its key regions for the first time since the recession.

“The key change in growth and sentiment rates last year was Australia. That market had been going backwards for several years, but returned to growth in September last year.”

Hays said the UK and Ireland had delivered strong net fee growth of 11pc to £271.9m. Operating profits also grew 75pc to £45.7m. Encouragingly, Hays said it had placed 16pc more people in permanent professional roles than last year, outpacing a 7pc rise in temporary staffing.

The growth in permanent jobs underlines the strengthening recovery in the jobs market. Between 2008 and late 2013, Hays reported a better performance in its British temporary staffing business than in permanent jobs, as companies shied away from major spending commitments.

It came after the Confederation of British Industry said rising confidence and improving retail sales had seen expectations for shop staff employment growth climb to a 15-year high.

In the UK, the IT jobs sector outpaced other areas, growing 22pc, while construction and property jobs were up 14pc and accountancy and finance were up by 13pc.

Mr Cox said wages were also rising above inflation, while industries such as quantitative surveying, where there is a shortage of qualified candidates, had seen wage rises of up to 20pc.

The group is on track to meet its goal of doubling operating profits by 2018, despite a £9.6m foreign exchange headwind last year.

Pre-tax profits rose 18pc to £156.1m in the year to the end of June, driven by a 9pc increase in like-for-like sales. Group turnover totalled £3.8bn.

Hays’ results came weeks after rival Robert Walters reported a 74pc increase in half-year profits.