Hays, the global recruitment group, expects market conditions to remain broadly stable in the near term, with its temporary and contracting business proving more resilient than permanent placement as hiring markets stay mixed across its major territories.
The cautious near-term assessment came alongside a first-quarter trading update covering the three months to 30 September 2026, in which group net fees fell 3% on a like-for-like basis and 5% on an actual basis, partly reflecting country disposals completed earlier in the year.
September's net fee growth rate came in at minus 2%, an improvement on the prior trend, and the company said it anticipates no material working-day impacts in the second quarter.
Temp and contracting net fees fell 1% like-for-like as volumes remained sequentially stable, while permanent placement declined 7%, dragged lower by a 12% drop in volumes and continuing fragility in Northern Europe.
By region, Germany fell 6%, the United Kingdom and Ireland dropped 5%, and Australia and New Zealand slid 3%, while the Rest of World division held flat, helped by strong performances in the Americas and Asia.
Chief executive Mark Dearnley said the easing decline in group net fees was driven by good temp and contracting growth in several countries, with North America returning to growth in permanent placement.
Consultant net fee productivity rose 8% in the quarter, the twelfth consecutive period of improvement on a seasonally adjusted basis, with Germany up 11% and the UK and Ireland up 10%.
Hays said it made further progress in the quarter on its Momentum restructuring strategy, which targets structural cost savings of around £50 million per annum in the current financial year.
The group achieved roughly £10 million of savings in the quarter alone, bringing cumulative structural savings to around £125 million per annum since the start of financial year 2024.
Net debt stood at approximately £45 million at the quarter end, compared with net cash of £20.1 million at 30 June 2026, reflecting seasonal cash flows and share purchases related to the company's all-colleague share award.
