Leading recruiters warn of tough conditions in jobs market as incomes fall

RECRUITERS Robert Walters and Hays have flagged that tough conditions have persisted in the jobs market, as both firms reported declining income and said they had axed staff to cut costs.

Robert Walters said its gross profit dropped by 16 per cent to £81m in the three months to the end of March, compared with the previous year.

In the UK, profits tumbled by a fifth as it cautioned that trading conditions remain challenging.

But it offered a glimmer of hope for the sector with income growing in London for the first time in more than a year.

Robert Walters said that even though some elements of the economic environment had started to improve, such as inflation, the

“general environment remains one where client and candidate confidence is at low levels”.

The global recruitment agency said its total workforce had shrunk by 13 per cent compared with the year prior, including a reduction of about 170 staff since the end of 2023.

It said it was keeping a tight control over costs as it stays focused on strengthening the business.

Meanwhile, fellow recruitment agency Hays, which specialises in placing white-collar roles, said its group fees dropped by 14 per cent in the three months to the end of March, on a like-for-like basis compared with the previous year.

In the UK and Ireland, fees dropped by 16 per cent year on year, with the biggest declines in the technology sector.

Hays told investors it was on track to meet its target of saving about £50m per year by the summer.

It came as it revealed its total headcount had also decreased by 13 per cent compared with the previous year. Hays’ chief executive Dirk Hahn said: “While economic uncertainties remain, we have a strong and clear strategy and will continue to build a more resilient business.”