Hays reports 10% fall in recruitment fees as jobs market remains under pressure

The global recruiter said permanent hiring was still a challenge

Hays has revealed a 10% fall in recruitment fees during the final quarter of the year as the employment market remained under strain, with the firm pinning its hopes on a new year uplift in hiring activity.

The international recruiter noted that permanent placements continued to prove difficult, with lengthier timescales required to fill positions. Net permanent recruitment fees declined by 14% in the last three months of 2025 compared with the same period the previous year, whilst temporary and contracting fees dropped by 8%.

In the UK and Ireland, the public sector market was particularly tough, with recruitment fees plummeting by 16% year-on-year, against a 5% fall in the private sector, according to Hays. Nevertheless, fees generated from technology roles increased year-on-year for the first time since mid-2023.

Recruitment agencies such as Hays generate revenue by charging businesses a fee to identify and place candidates in positions. The firm has been affected by a deceleration in hiring and a softer labour market over the past 12 months, with numerous organisations implementing cost reductions in response to a more challenging economic landscape.

Hays indicated that a new year “return to work” pattern will prove particularly crucial throughout the 2026 financial year, prompting close monitoring of activity levels.

Chief executive Dirk Hahn said: “Amidst ongoing macroeconomic uncertainty, challenging perm (permanent hiring) conditions, and weaker average hours worked in Germany, we are executing well against our strategy and continue to make significant operational progress.”

He went on to say that the firm was honing its attention on “long-term growth markets” whilst ensuring it concentrated on the most sought-after job categories – those demanding higher qualifications and offering better remuneration, expanding sectors and its largest corporate clients.

Combined with cost-reduction measures, this strategic approach will enable the company to return to its previous profit peak of £250 million, according to the business.

For the first half of its financial year, Hays anticipates generating profits of approximately £20m. On Wednesday morning, Hays’ share price fell by more than 3%.