Economic slowdown hits recruitment agency Hays

It's a predictable result given the overall state of the economy.  In the case of this recruitment agency this scenario is worsened as 1/4 of it's recruitment business lies in the construction sector which has been heavily affected by the property market's demise.

Full operating profits in the UK have fallen by 3% to £137M whilst staff levels have been reduced by 7% representing 400 people in the UK and Ireland.  to date, these staff losses have been achieved without redundancies through natural turnover.  There is a suggestion that further staff cuts will be required leaving a question mark over redundancies at some point.

Hays have also suffered in other sectors such and city jobs, which have taken hits under the present credit crunch.

The recruitment agency is quoted as saying that this looks more like the recession witnessed in the late 80s and early 90s.  They have now brought in the group's chief executive Alistair Cox to try and turn the situation around.