On Friday, British recruitment giant Hays Plc (HAYS.L) reported good client and candidate activity in its temporary and contracting business as corporates negotiated economic uncertainty and rethought their permanent recruiting plans.
The worldwide recruiting sector is slow as sticky inflation and recession worries force companies to eliminate employment or freeze hiring. At the same time, temporary and contract jobs perform better than permanent roles as employers bide time and minimize risks.
Several big U.S. technology corporations have begun or will begin substantial layoffs to survive the economic slump.
“Our key markets continue to be characterised by acute skill shortages and wage inflation, and we are benefiting from our early management actions to increase fee margins in skill-short markets,” CEO Alistair Cox said.
Hays, a London-based technology recruiter, reported record like-for-like net fees in the three months ending March 31.
As placement volumes dropped due to client and candidate trust, temporary hiring fees rose 11% while permanent hiring fees dipped 2%.
