Recruiter Hays warns of tough year ahead after 8% fall in net fees

(Reuters) -British recruiter Hays reported an 8% fall in first-quarter like-for-like net fees on Friday, and warned that challenging conditions from a sluggish job market are likely to persist in the current fiscal year.

Hays, whose annual profit slumped 57% in the last fiscal year as employers cut back on permanent hiring and new job openings, has been hit hardest in Germany, its biggest market, and across wider Europe, where a slowing economy and weak employer confidence have stalled recruitment activity.

Global recruiters, such as SThree and Randstad, have warned of persistent uncertainty in the job market amid inflationary pressures in Europe, recession fears, and trade tensions linked to U.S. President Donald Trump's tariffs.

"Despite ongoing macroeconomic uncertainty and challenging perm conditions, we experienced a normal recovery in post-summer activity levels and trading was stable on a seasonally adjusted basis through the quarter", said CEO Dirk Hahn in a statement.

Its net fees in Germany dipped 7% in the first-quarter, it said.

Hays, which focuses largely on hiring for white-collar roles, said its ongoing initiatives aimed at delivering structural cost reductions of around 45 million pounds ($59.85 million) per year by end of the fiscal year 2029 are progressing as planned.

($1 = 0.7519 pounds)

(Reporting by Raechel Thankam Job in Bengaluru; Editing by Rashmi Aich)